Feb 1
Today is the day that requires funds be in compliance with 'mandatory' registration at the state or federal level (SEC) for 'hedge funds'. Under $25M works with state regulators, over $25M works with the SEC. Response and registration has been 'tepid' at best.
There are several loopholes. For the very large, very established funds that have the credibility, they can choose a lockup period greater than 24 months. "page 23 of the new SEC rule: Any fund that requires investors to commit their money for more than two years does not have to register with the SEC. "
The other loophole, whether under or over $25M, if there are less than 15 investors (ie. limited partners), the fund is exempt from registration. However, this may hurt funds both large and small as they may not be able to use the "we're registered" slogan as part of their pitch to new investors.
Top managers under 40:
Kenneth Griffin, Citadel
William von Mueffling, Cantillon
Lee Ainslie, Maverick, (okay he's 41)
Lawrence Robbins, Glenview
The Ziff brothers - yeah they inherited it but they are also making $ too
'hedgehogging' - Barton Biggs, read it, over and over. Good passages and good lessons from a guy who's been in the trenches for 40 years. He's seen pretty much everything and still going to work every day. Lots of fluff and name-dropping but there are some words to live by in there too.
Canslim works, trend-following work, technical analyis to identify entry and exit points work. Using the following methods for idea generation and trade execution/management teamed with a strict disipline to stick to one's stops and identify exit points before they arrive are the keys to survival and out-performing the masses. Take the best of fundamental analyis and the best of technical analyis and there is a winning approach.
mantra: 'Trend-following/canslim/discipline'....repeat...
long oil? - then go long the hottest stocks in the oil sector. Find the best stocks in the best performing sector. Find them early and be patient. Short the worst stocks in the worst sectors.
Often things crumble further and faster than they climb.
To go long, accentuate the performance with calls on the index or the individual stock. Or if you are truly hedging your position, buy puts as a hedge. For calls, either in-the-$ or out-of-the-$ will do.
3 trading blogs to catch from day to day.
one is a trend trader
one is a fund over-sight guy
the other is a CT-based short-term/swing trader
I'll post links later.
fyi, greenwich is mecca.
stocks in play:
xle
slb
goog (what's *your* cost basis?)
do
brcm
utx
sbux
sh-sh-sh-short?:
intc
jnpr
amzn
pfcb
tyc
Anyone who is anybody watches the 200 dma.
Log is better than linear in most cases. A $1 move in a $5 stock is different than a $1 move in a $50 stock.
Can someone be both a value investor that goes long undervalued stocks and also a growth investor who buys strong expensive companies with high growth rates and lots of momentum?
Short over-valued or just plain fraud.
Losers average losers. - Paul Tudor Jones
Again, read 'hedgehogging' by Barton Biggs, a very accurate portrayal of the ups/downs and challenges of starting and subsequently managing a fund and surviving the industry.
rubiconcap.com