What is considered good on this board? For instance...if you just do credit spreads or covered calls for 3-6% each month (annualized to like 170% percent gain)...is that not good? Do people here really pull crazy gains, the so called 1k-100k story that the get rich quick websites talk about?
Tried to get performance numbers, and they seem to require login. Whats the jist of his performance? I'm too surprised that McMillan wouldn't be able to have an edge over other hedge funds. So far I'm reading his 'on options', and I think there's a lot of good ideas in the book. Its a good crash course on hedging concepts and money management ideas. Maybe he's bound by restrictions and fund policy with to respect what he can do. I'd like to see his performance the last 5 years -- and especially the last month.
I would consider 3-6%/month pretty damn good. I'm looking to be able to do that myself, even 1-2% per month. Is that what you are doing? The Hedge Fund in question didn't do much better than bonds in two of the past three years, low double digits in one, and is down slightly YTD. Edit to add: I don't think they have been around 5 years, plus they only show YTD not last month. BTW, they have a $1M minimum, and only $5M total under management.
Hardel Volatility Arbitrage Fund Inception Jun 2005 Worst DD 5.17 Comp Annual ROR -1.55 2005 ROR Final -0.59 2006 ROR (Thru May) -2.13 Current AUM 1.78M Not sure the inflation rate for that period, but the mattress may have won this one.
Perhaps a key to performance is that there has been NO volatility (until very recently) to arbitrage? '04, '05 and 1st 4/5 months this year..zip..nada.. only recently have there really been any opportunity with vol's going from 10%-23% and now ~15 on spx.
Curious if you could show me your calculations to arrive at 170%... Given a large enough sample, I'm sure you will find people that do. However, it neither proves nor disproves anything useful IMO. Crazy gains are matched by crazy blow-ups. Roll the dice! Might be better to focus on turning a profit one month at a time rather than fast forwarding to the future in one's mind's eye with compounded returns. Prosperous trading. MoMoney.
oops...sorry, I meant 70% gain...becomes 170% of what you started out with....anyways...either way, 70% a yr is pretty good IMO.