Managing Funds for a Living

Peruse at you pleasure (or abhor) the following blah-blah:



I use these ritualistically not only for fellow members or prospects, but to continue to hone my abilities with money managing. To some it shows that today's returns are on track with past stated performance. By simply sneeking a peak for a few months one can truly know for sure. Now the yellow line (KC) tends to stay above the blue (Nasdaq).



Some may have seen these ( they are an update of actually a set of 16 I use each week). The above account uses no margin, like an IRA account. In a 52 week period, I am now able to 'beat' the Nasdaq by about 20% - an improvement to 1998.



The above is a testiment to the risk mangagement that's improved over the years. With lower volatility the same "huge" returns are achieved today.

These also tell me that my performance is indeed predicated on the market's performance. I correlate most closely with the Nasdaq due to my covered call candidates.

Even if I was managing some limited partnership funds, the routine exercised at my site is already in place and an absolute necessity.

So all that one needs to do is determine, based upon this approximate 20%/28% measure (margin/non-margin fund), is what the Nasdaq will do in the next 5-10 years. Then read a monthly report, view DD, and perhaps even be more (happily) surprised that even this measure is being exceeded (see previous posts regarding tatical "savings" benefits).

Lesson learned: Truly know that your money is going places. PayS

 

I'm glad that you are plotting them real-time against each other, but make sure you are comparing apples to apples.

We aren't saying that the call and put will move with the same speed. We are saying the the short call + long stock combination will move at the same speed as the short put by itself, assuming the call and put are at the same strike.

With a drop in the underlying the call will absolutely move slower than the put, but you have to add the stock losses to the gains on the short call. You'll see that the stock is losing money faster than the short call is making money. The difference between the two will be equal to the rate at which the short put is losing money.

 

Yes it was an assumption. He has been doing this for 10 years, he should at least know delta by now.

On these forums a certain amount of knowledge compression is necessary to keep posts concise. It becomes every participant to learn at least the basic jargon. Admittedly, atticus can still throw me.

 

I admire your passion and determination, but to give you a little insight into the way this industry (private money) works. The statement above isn't a good thing. Most investors want non-correlation to the broader market. IOW, you aren't the only person managing their money. They only have a portion with you. It is expected that a good portion of their money will follow the major indexes. This can be accomplished cheaply by investment through ETFs. They invest with hedge fund managers to provide non-correlating strategies.

If you're highly correlated with the major averages you will have a very hard time attracting anyone with more than a measly $10K or so to invest.

 

"The Dow, which has been the market's top index for 2 1/2 months, flashed three straight down days in higher volume Tuesday to Thursday. That kind of rapid distribution isn't what you'd expect from a strong rally."

...may not apply to most hedgies...but does raise some concern for this wannabee.Ga

 

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Of course it is, its just not possible to keep any of it. I myself am living proof of that!

Brandon. AKA the guy who's been donating a bit of money every year to the options gods (except for 1999 when they annointed me a genious for selling naked puts)

 

Numbers can be deceiving...



I'm stopped out on most all my positions...but this is usually good if 10-25x your money has already incurred and we avoid a 10-15% drawdown from corrections and slip away with a 5-10% drop from the top.



This week's "highly-rated, fully-researched" watchlist of Covered Call Candidates has only yielded a handful more biotechs...and your IOC, JADE, WNR, AKS, etc.

But slim pickin's!

Hypothetically speaking:

Say I have a $100,000,000 under management. My people are happy to get 25% (ann.avg.) and I get the rest (lol).

Then say I going quickly in 3-5 years to $1B.

I still only want to manage 5 positions (more lol). I'm phasing etc. not to affect price, etc.

Then I get fed up and buy med-highly liquid stocks with lesser premiums (less vol/less risk/less prem) - but go with these out on margin...seems a safe bet.

I am happy, can now go from 1B - 5B and sit with, well Bill (you pick the last name).

Now get bold - resist your urge to say "you idiot" or "let me tell you" and give me some useful ideas and what can't, what can, how you'd do it, and of course end with the fact that...

(1) no one want to use more than 10k for this,

(2) Even if a couple hundred thousand were managed, if you even could keep up with av-ann goals, 10mill tops could be made with this appraoch due to liquidity - OR WHAT???

GilLpaYSomcentsnOWWWW!!!!!!!!!!!!!!!!!!!

 

Some of what keeps me busy each week...
(take note that references to my site are XX - in keeping with ET policy.)

Weekly Newsletter

Volume VI, Issue XX-III
June 10, 2007


Announcements
Be sure and capitalize by using our Hedge Fund Manager as your very own personal investment coach! Now included with your Classic or Pro subscription, you may speak directly with Mr. Gilbert J. Arevalo, President & Chief Hedge Fund Strategist, XX Management by simply calling his personally line at (cell) xxx.xxx.xxxx to get your investments back on track - FAST!!

The week started on Monday with most of the major averages and closely watched indexes recording fresh new highs. on Tuesday, a partial rebound late in the day narrowed the market’s losses, but Wall Street still logged another distibution day. As of Tuesday, the Dow industrials index were up more than 9% since the market’s March 21 follow-through. It had scored gains in eight of the past nine weeks. Meanwhile, the Nasdaq had risen more than 6% during that span.

During the recent sessions, we saw the indexes bulling their way out of early declines to post gains or significantly pare losses. Meanwhile, a number of leaders and tech/Internet heavyweights bucked the market’s downtrend. Apple and Google vaulted to record highs. Amazon.com hit its best levels in more than seven years.

There was no such recovery Wednesday, as interest rate concerns pressured the major stock indexes for a second session. Then a big drop in the bond market sent stocks sharply lower Thursday, as volume swelled across the board. That marked the third straight time that most or all of the major indexes logged a distribution day to now casting doubt on the market’s current rally.

Thursday's Trading Journal entry notes the change in Market Direction from "Green Light" to "Caution", as the rally is now under pressure. Three out of four growth stocks follow the broad market’s lead. So don’t try to swim against the tide. Unless the market can make gains on healthy volume, it’s best to wait to buildup your portfolio.

Many of these lessons CAN ONLY BE LEARNED AT XX Training Institute! Watch and learn as our Hedge Fund Manager demonstrates "LIVE" these proven methods in our Covered Call Funds. To get "An Overview of This Website" see FREE Training Seminar 1.

The stock market retraced some lost ground Friday. But lighter volume dampened the mood as stocks ended lower for the week. Institutional big-cap favorites such as Google, Apple and Research In Motion still have flourished; all three gained ground Monday. It will be interesting to see how these stack up in the coming week.

Investors need to now turn defensive. Judge your stocks carefully. If you own lesser-quality stocks that have climbed since you bought them, consider taking some profits. Sell any stock that’s down to your "stop-loss" target — no exceptions. By avoiding new buys and trimming your holdings, you can reduce your exposure.

The best way to navigate this kind of market is also the best way to navigate any market condition: exercise discipline - WHICH YOU WILL LEARN as a member of XX Training Insitute! If you’re a novice covered call writer, check out our two exhaustive Training Seminar series' at XX.com, and learn more about mastering a set of proper covered call buy and sell rules. Even if you’re a veteran trader, a refresher course is a good idea. Even the most successful investors make their share of mistakes!

At XX.com, we scrutinize the price and volume action of the major indexes and market-leading stocks. We target leading stocks which have fared well in recent weeks, such as you'll find in our highly-rated, fully-researched watchlist of Covered Call Candidates. Indeed several top-rated stocks are bolting higher in fast trade, and yet we stay prepared to move decisively if the need arises!

You may not be aware of it, but the individual investor is hard-pressed TO MAKE ANY KIND OF MONEY with his or her investments. I'm not talking about the occasional hit or home-run, but over any multi-year period (more than one) - even the seasoned pro will likely fall short of the major averages. With the close of 2006, we at XX.com are very pleased to have afforded our members with 25.5% and 34.2% year-to-date gains, from trades made in our respective Classic and Pro Funds.

Only by following ALL OF OUR MOVES in and out of the stock market and covered call positions, will you be able to FULLY UNDERSTAND how we have outperformed in the past! Study ALL of our Performance Charts to gain a perspective on how we handle both favorable and untenable market periods.

Learn how to grow your funds EXPONENTIALLY - AND TO KEEP YOUR LOSSES TO A MINIMUM! In 2006 we avoided major losses to our Funds by side-stepping the onslought of the year's 15% correction from the Nasdaq. Then we successfully phased into high-yielding covered call positions - just days after the Stock Market bottom. OUR FUNDS MOVED UP 45% IN JUST SIX MONTHS! At XX.com we do exactly what we say, year-in and year-out. Substantial gains in 2007 are VERY PROBABLE - so Get on board TODAY!

Glimpse at a recent snapshot of our "Pro" Model Portfolio and updated Performance Charts; Pro Fund and Pro Fund vs Nasdaq and see that our covered call training services are unrivalled in the industry!

continued...

 

Week in Review: Market Analysis
Stocks showed resilience again Monday, shaking off huge losses on the Chinese market and a spike in crude oil prices to finish higher.The Shanghai index plunged 8.3% for the session, setting off fears of a corresponding drop in the U.S. markets. A 9% dive on the Chinese exchange Feb. 27 triggered massive losses on Wall Street. This time, U.S. stocks mimicked Wednesday’s action. That day, the Shanghai index tumbled 6.5%.

But a late-day surge propelled the major indexes to healthy gains. Monday’s final tally: The Nasdaq, S&P 500 and NYSE composite all shook off early losses, closing with 0.2% gains. All closed near session highs. Volume finished modestly lower across the board. The jump in oil prices also sent several leading energy stocks higher. Transportation stocks fell on the news, as the Dow transports sank 0.7%.

China-related ADRs showed resilience of their own. Ctrip.com, Baidu.com and most other top-rated Chinese stocks held firm despite the losses in Shanghai. Chinese ADRs also recorded mixed results during the prior week’s shake-up on China’s main stock exchange.

Midcaps outperformed on the session as the S&P 400 rallied 0.4% to an all-time high. Meanwhile, the Nasdaq advanced for the sixth straight session. The S&P 500 and the small-cap S&P 600 also scored record closing highs, rising 0.2% each. Meanwhile, the Dow added 0.1%, also a record finish.

Comments from the Fed chairman, an economic report and rising bond yields teamed up to knock stocks lower Tuesday. Higher volume across the board marked a distribution day on Wall Street. A partial rebound late in the day narrowed the market’s losses.

Still, the losses were moderate, and the actions of the leading stocks were mostly positive. At that time, Tuesday’s dip was viewed as mild when in the context of the current rally. Pullback's are normal in an uptrend; even the biggest bull markets of all time went through some brief periods of consolidation on the way up.

Federal Reserve Chairman Ben Bernanke put the market on edge early, noting that the economy is showing signs of improvement. Investors took the comments as a sign that interest-rate cuts are not coming any time soon. The May ISM services sector report showed expansion, echoing the Fed chief’s remarks.

Bond yields jumped on the news. The yield on the benchmark 10-year note leapt to 4.98%, up from 4.93% Monday. None of that made much of a difference to leading stocks. The IBD 100 edged down just 0.1%. That marked the seventh consecutive session that IBD’s gauge of top-rated stocks outperformed the broader S&P 500.

The stock market retreated broadly Wednesday on fresh evidence of inflation. The Dow lost 1% while the S&P 500 and Nasdaq fell 0.9%. The NYSE composite shed 1.1%. Volume declined on the Nasdaq. But trading edged up late in the day on the NYSE, giving the S&P 500, Dow and New York composite another distribution day. The IBD 100 gave up 1.2% Wednesday. That broke a string of seven sessions in which the index of top-rated stocks had outperformed the major indexes. Few leaders, though, met heavy volume or got into serious trouble.

The indexes fell sharply at the open. Nonfarm productivity rose at a 1% annual rate in the first quarter. That was revised down from an initial 1.7% reading. Labor costs jumped 1.8% — well above expectations. The news heightened inflation fears. Meanwhile, the European Central Bank, as expected, raised its key interest rate to the highest level in nearly six years. Policy makers across the Atlantic fear that rising oil prices and wages could spur more inflation.

Stocks tanked Thursday as a spike in bond yields and rising oil prices handed equities their third straight loss. The Nasdaq, NYSE composite and S&P 500 all tumbled 1.8%. The Dow sank 1.5%. Volume spiked up on the NYSE and was higher on the Nasdaq. The Dow has skidded 3% the precious three days. The S&P 500 has dropped 3.2%. The continuing declines, combined with accelerating volume, signal a shift in the market’s tenor.
Week in Review: Market Analysis (cont.)
Bearish comments from influential PIMCO bond trader Bill Gross sent the yield on the benchmark 10-year note above 5% for the first time in 11 months. The 10-year Treasury yield jumped to 5.10% from 4.97% Wednesday, after hitting an intraday high of 5.13%. Oil prices also kept rising, tacking on a 1.5% gain to close at nearly $67 a barrel.

All 30 Dow components ended in the red, handing the blue-chip index a 1.5% loss. The midcap S&P 400 collapsed 2.1% and the small-cap S&P 600 dived 1.9%. Most major indexes came close to their 50-day moving averages. Thursday’s action by leading stocks confirmed the need for caution. The IBD 100 plunged 2.8% as we saw a wide array of top-rated stocks falling in heavy volume.

Stocks rebounded Friday after a three-day slide, but still finished lower for the week. The tech-laden Nasdaq rebounded 1.3%. The Dow industrials gained 1.2%. The NYSE composite and S&P 500 rose 1.1% each. Several indexes found support at their 50-day moving averages. Institutional investors will often step in and snatch shares of a leading stock at that support level. They’ll sometimes do the same for the major market indexes.

But trading volume, another gauge of big investors’ interest, dried up Friday. Nasdaq volume sank 19% compared to Thursday’s level. NYSE turnover eased 18%. Ideally, you’d like to see stocks climb in higher volume and occasionally pull back in lighter trade. Instead, the opposite held true for most of the week.

Investors found some relief Friday, as oil prices retreated. July crude fell $2.17 to $64.76 a barrel. Chip stocks helped revive the broad indexes. National Semiconductor vaulted 15% in huge trade. The maker of chips used in wireless handsets beat quarterly earnings views. The firm also upped its Q1 sales forecast and announced a $2 billion share buyback. The Philadelphia semiconductor index rallied on the news, surging 3.1%.

For the week, the NYSE composite dropped 2.2%. The S&P 500 slid 1.9%, the Dow 1.8%. The Nasdaq shed 1.5%. Leading stocks also got a reprieve, as the IBD 100 picked up 1.1% Friday. That pared the IBD 100’s weekly loss to 2.2%.

There’s a reason XX.com pays such close attention to a stock’s price action and its volume — one rarely goes far without the other. And when prices make big moves without supporting volume, or volume spikes without price gains coming along, that’s often a sign of trouble.

It is imperative that you cut your losses short. Never let a stock fall much beyond your stop-loss target. At XX.com, our members are given a well-thought out, proven method for minimizing losses after ramping up heady gains. Selling quickly lets you preserve your capital for new buys. It also helps you maintain your confidence by avoiding crushing losses.

2006 ENDED WITH DOUBLE DIGIT GAINS FOR THE MAJOR INDEXES. Growth investors needed extreme discipline to pocket gains in ’06, though. In good markets and bad, smooth markets and choppy ones, following a strict set of buy and sell rules is the best way to maximize gains and limit losses. We provide complete covered call investment training to help you get your funds back on track!

Continued...

 

Weekly Trades

XX Classic Covered Call Fund
This past week, our Classic Fund fell 3.25%. Thus far in 2007, the fund is up 6.30%, and is currently 21% vested.

For all of 2006 our non-margin fund SWELLED 25.64%. On the year, it outperformed the Nasdaq by 15.93%, the Dow by 9.17% and the S&P 500 by 11.84!

We have called EVERY MARKET BOTTOM...within days! See our Past Performance Charts. Get in on the ground floor, since over time - we have never been outperformed!!!

XX Pro Covered Call Fund
Our "limited"-margin fund - which closed 2006 at an ALL-TIME HIGH, also lost 3.25% on the week. In 2007 the fund also has a 6.30% return. Currently our premier fund is also 21% vested.

Our Pro Fund again performed especially well this past year - SURGING 34.17% for all of 2006! XX finished 2006 with our Pro Fund having outperformed the Nasdaq BY A WHOPPING 24.65%, the Dow by 17.88% and the S&P 500 by 20.55%!

2007 will likely again afford our members with opportunity to "enhance" our funds with margin-trading! NO TIME LIKE THE PRESENT to take advantage of all our Services - and reap the financial benefits of a lifetime!

Comments from the CEO
Amidst all this, XX continues to be a shining example of how to navigate through treacherous market conditions. First off, we sell covered calls - that's all we do! By accurately moving back into stocks just days after the bottom of last year's market correction - and February's sharp decline, we've racked up heady gains with relative ease. If you have been following in step with our Hedge Fund Manager, you are now well ahead of the game. Just one look at our Performance Charts and it's easy to see why XX Training Institute...IS HOME OF THE BEST-PERFORMING INVESTMENT FUNDS on the planet!

Before this week, the market had surfed a brisk uptrend. Stocks frequently shrugged off bad news. A pair of big declines recently on the Chinese stock market had little effect on U.S. stocks. Rising oil prices also whizzed by largely unnoticed. But this week’s about-face points to a market that’s again reacting nervously to the news.

The Dow, which has been the market’s top index for 2 1/2 months, flashed three straight down days in higher volume Tuesday to Thursday. That kind of rapid distribution isn’t what you’d expect from a strong rally. Comments by the Federal Reserve and a spate of economic reports triggered interest rate fears on Wall Street. That heightened a climb in bond yields, and the major stock market indexes responded with losses.

The weekend gives investors a chance to absorb all of the market’s recent price and volume action and plot an investing strategy. A number of growth stocks have broken out of bases or surged past follow-on buy points in recent weeks, offering ample buy opportunities. This week's watchlist of Covered Call Candidates offers fundamental and technical analysis on dozens of high-performance stocks. Build a watchlist of top stocks forming bases or approaching secondary buy points. That way instead of chasing stocks, you can let them come to you.

Once again our Covered Call Investment Strategy reigned supreme - easily handing our members handsome 25.5% and 34.2% annual gains in our respective Classic and Pro Funds for all of 2006!

If your investment methods have left you helpless, DON'T GIVE UP! XX Training Institute will give you what you want - to get your money back on track in a seamless and timely manner. Spend time with us and be encouraged that we know best how to grow your accounts with our Historical Averages. We have yet to see a better-performing investment fund!

We offer complete investment training direct from our Hedge Fund Manager. This unique "hands-on" training approach is designed to transform the individualXX.com and XX to our XXl today.

Watch and learn how to manage out-sized returns on a consistent basis as we grow our funds at XX.com - the world's only "LIVE" covered call fund!

Again...just for reference to get an idea of what I gotta do each week! Again...no url's have been posted. You can PM for any of that kind of information.

Let me know what you think. How is your investment plan stacking up? I haven't got a whole lot to compare to.PayS