I NEVER said those strategies were no good. You can't dichotomize them into good/no-good. They are just TOOLS. There is no edge to ANY of them. If you look at my book, you will examples of all of above strategies, but that doesn't mean I am employing them at the outset. It comes down to maintaining that one number. I understand options probably better than you think, but I am focusing on the forest (the total position of the book) not the bark of the trees.
I don't I have EVER said that I am up over 35% in the period. I have always stated my return compared to the SPX. It's part of my philosophy which guides my trading. Please point out where I said otherwise and I'll make the correction. I'd like you to point out some of the many inconsistencies, or where I changed my story.
" thank you for the time you spent reviewing my site. It's not a call to raise capital, it's really a blog of my PERSONAL hedge fund. If you can show me where in the site I say I want to raise capital I'll gladly change it. Here's how I calculate my performance: On Aug 14 2007 the SP500 was 1426, and I was full cash, so in this "competition" we both started at 1426. I tracked the daily liquidation value of my fund, and the shows the daily close relative to the SP500 from Aug 14, 2007. As of July 24, 2008 the fund is +32.06% vs the S&P500, which I KNOW is a little above-average. My goal is to beat the SP500, something that 75% of actively managed mutual funds do not do. And yes the fund is always net long via options on the SPY. "
Ok now you are confusing me. You said +32% VERSUS the S&P 500. So if the S&P is up 5% your fund is up 6.6% which is 32% greater? Or your fund is up 32% versus the S&P500 return of ____% over the same time period.
How much is your porfolio up year to date, saying that you are up 30% when the spx is down just says you weren't dumb enough to buy the top. A fund is not going to be that impressed, they want high alpha and low sharpe ratios plus a track record, congrats on being up though.
IF I were to compare in like units, the SP500 right now is 1275.35. Using THAT measure my book is 1697.11 That's from Aug 14/07 to this moment, just under 1 year.