During November the portfolio rose 1.78% vs 2.45% for the S&P 500. Performance was dragged down by Gamestop (GME) which dropped 12% month-on-month as guidance was reduced and earnings missed on delayed game releases. Alaskan Air (ALK) added another 11% after October’s 22% gain and I’ve started taking profits. Hewlett Packard (HPQ) gained 9% with the spin-off of the … [Read more...]
When Shorting Maximizes Portfolio Performance
Summary Short portfolios can do very poorly during strong bull markets. A loss on the short end can severely damage a long-short portfolio. Long only beats a consistently long-short portfolio in the long run. However, employing a dynamic strategy which goes long-short during bear markets can increase returns, reduce losses and beat a Long only portfolio. I've … [Read more...]
Newsletter – October 2014
October turned out to be a rollercoaster ride with many traps for both traders and investors. It would have been easy to get carried away, however FatAlpha remained calmed and saw its portfolio reverse from a loss to a 6.2% return vs 2.3% for the S&P 500. The performance is even more remarkable if this video by Yahoo Finance is correct: http://goo.gl/5Kt7lT Last … [Read more...]
Newsletter – September 2014
The quarter closed up 4.4% for FatAlpha vs 0.6% for the S&P 500. September was a down month for both the market and the portfolio as they dropped -1.55% and -2.39% respectively. Volatility increased in a month which historically has poor returns. Investors should keep a close eye on the 100-day moving average and the market’s price action around that level. The past six … [Read more...]
Two Simple Charts To Monitor The S&P 500
Summary Everyday investors are exposed to a lot of market noise. By monitoring these daily and monthly charts an investor can stay on the right side of the market. Price action along with the 100-day ma provided several profitable opportunities. I show 6 examples and how an investor could see the turning point. The monthly chart helps clear potential noise from … [Read more...]
