Marketocracy Funds

plans to roll out two new tech funds at the end of the year, according to paperwork filed with regulators Friday.

The Los Altos, Calif.-based fund firm, founded by former

Firsthand Funds

manager Ken Kam, plans to launch the

Marketocracy ChangeWave

and

Marketocracy Technology Plus

funds at year-end if all goes according to plan. Both funds will have a tech focus and Kam has hired subadvisers to run each.

The ChangeWave fund will focus on stocks of companies positioned to benefit from growing access to the Internet. This could include networkers, wireless Web companies, data storage shops, and Web hosters, according to the fund's filing. Tobin Smith will hold the reins. Smith is the founder of the nascent

ChangeWave Capital Corporation

and author of

ChangeWave Investing: Picking the Next Monster Stocks for the New Economy, published in June.

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The Technology Plus fund will, surprise, focus on tech stocks, with the added twist of short-selling. Short-selling is a defensive practice that lets an investor make money from a stock whose price is falling. In selling short or "shorting," an investor sells borrowed stock, hoping to return it at a lower price down the road when the stock has fallen. Paul McEntire of

Skye Investment Advisors

will run the fund. He's run the

Bearguard

fund, which primarily shorts stocks, since its November inception. So far this year the fund is up 20.5%, according to

Morningstar

.

The new funds' filings give their managers the leeway to invest in U.S. or foreign stocks of any size. They also have a nondiversified tag, meaning they can make outsize bets on individual positions.

Marketocracy already offers Kam's

(MSFQX)

Medical Specialists' fund, which is up 36.2% so far this year but trails the average healthcare fund, according to Morningstar.

Neither new fund will carry a load or sales charge, but their annual expenses will start out above-average. Each fund will launch with a 1.95% expense ratio, according to their filings. The average tech fund's expenses are 1.72%, according to Morningstar.

Both funds' expenses are scheduled to drop as their asset bases rise, according to the paperwork, but neither is set to drop below 1.8% with up to $1 billion.

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