When Ken Kam was a portfolio manager at Firsthand Funds, he came across a problem.

There were very few potential employees who had what he considered a long enough track record to entrust with clients' money. Many were straight out of business school and didn't have the exceptional five-year record Kam was looking for.

In 2000, that frustration led Kam to leave Firsthand and found Marketocracy, an online-trading platform that allows any individual to trade with a $1 million virtual portfolio. If after three years participants can demonstrate 1,000 basis points of excess return and do well in an interview …

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