Professional Diversification

Discussion in 'Strategy Development' started by $CostAverageMAN, Jun 9, 2006.

  1. I'm always interested in how some of the pros handle corrections....Now given the information I got from the last SEC 13-F filing on March 31st of Tontine Management LLC....Run by Jeffery Gendell.....Since March 31st his fund is down 11.01%....So don't feel bad if you took a beating over this little correction some of the best did too.....Now I have not gone through and adjusted for position changes he has made since March 31st of 2006, but when looking at the SEC filings for this fund I only saw a few minor position changes (SEC form 4).....

    Anyway just thought I would share this one with everyone.....I have quite a few more funds that I follow and have built, but I will slowly post them in this form.....

    Anyway thoughts on this are welcome and it's interesting to note which stocks took the biggest beating and which ones held up strong.....

    I like to take Sector Momentum and apply it to stocks in that sector that are owned by some of my favorite funds.....Bottom Line is I don't have the time to look at 10-Q's and 8-K's and I would rather just let the professionals do that work for me and piggy back on their research.....

    Some feedback on this would be nice and I may post some other funds shortly....

    BTW--- This is not my favorite fund.... Just one I like to watch for ideas....He actually did quite poorly with his overweight in the homebuilders.....Makes you wonder when to touch that sector?

    $COSTAverageMAN
     
  2. $Costaverageman,
    Can you tell me where I can find detailed info like this on funds?Thanks in advance for the info.
    I wonder when the funds decide to get out of a position or $ cost average? Most of the homebuilders are off around 25%. Are the homebuilders on the wrong side of the interest rate cycle or do they look attractive at these levels with rates still relatively low and a possible pause in rate increases somewhere on the horizon?
     
  3. http://myway.brand.edgar-online.com/default.aspx?sym=bw

    this should work.....Do a search on a fund and then go to the 13-F form (ALL funds posted on 5/15/2006----for positions as of 3/31/2006)

    Some have to file a form 4 for every transaction they do if they are a majority shareholder.....

    Gendell bought 17400 shares of BW at 19.02 about 10 days ago....So I let it go up to 22 and back down to 19.00 where I bought some yesterday....

    Now I feel good about that entry price.....It really helps....

    OK this link should work and the first form is FORM 4 where he bought stock

    $COSTAverageMAN
     
  4. The Fund of the Day will be one of my favorites....over 100 Billion in assets.....I believe they closed the fund off to new investors recently....From 3/31/2006 to 6/9/2006 (which is the current data of this fund) this fund is down -1.94%....Good sector weighting in my opinion....The Sector Chart is on sheet 2 of the excel sheet...

    Quality names with good liquidity.....Correlates with the S&P 500...

    Any thoughts.....I own quite a few of their stocks....Every Utility, Both REIT's, Food Beverage and Alcohol, Insurance, Cosmetics and a few others.....

    It has paid off quite well during this sell off...

    $COSTAverageMAN

    posting @ Forums--Journal---Trading for a living --Want to Share
     
  5. lkh

    lkh

    How do you use these funds. Do you somehow base your investment decisions on what these funds do or have done with that stock?
     
  6. I use them in many different ways.....Most importantly when a certain sector is beginnig to show strength I will look to see what stocks some of my favorite funds hold in that sector.....I really don't have the time to do the Due Diligence on all my investments given my portfolio usually consist of around 150+ stocks....The way I figure....Is if I buy stocks that are in some of the best funds I will not have to worry about some of the firm specific risk in that stock compared to a stock with out good institutional ownership in the same sector.....

    Second I like to see how they diversify sectors and more importantly where they are overweight.....

    Third I will be patient and have bid orders set up much lower than current prices (Near resistance levels) in some sectors waiting for a better entry....I have actually had bid orders that were set up that didn't get filled for months until recently......

    I hope this helps....

    $COSTAverageMAN
     
  7. $Cost-

    Thanks for sharing the Dodge & Cox spread sheet. Do you use software to help you create these? It looks like a lot of work to type in all of the information manually from the SEC filings :>)

    gs