I’ve decided to begin this new ‘Review’ section with a review of the book that inspired me and was the trigger or turning point to begin forming my strategy. This book is non-other than “What Works on Wall Street” by James O’Shaughnessy. If you have any doubt that value investing doesn't work then I guarantee you that this book will change your mind. The beauty of the book … [Read more...]
Newsletter – November 2014
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...]
Staples: Is a Meltdown Coming?
Summary Staples has been struggling for some time. Things are getting worse rather than better. Can't expect anything good from potentially very bad management. The company needs an activist investor. Wall Street estimate of 97 cents is optimistic. Expected EPS will come down over the next six months. Probable value trap for the time being until operations … [Read more...]
