We are now heavy into gold stocks, ETF, and USO. The situation in Egypt going into a long weekend and the end of the month will make hedge funds nervous. Expect a very weak close. Hedge as much as you dare.
The Fed decision today to leave rates unchanged should provide some near term impetus for gold to trade higher. These two prominent gold miners, NEM and ABX seem technically poised for a bounce.
We have a very high cash position right now, almost 50%. Half of the securities we own are municipal bonds we blogged about earlier. The rest is in Intel, AMSC, ARTC, and a new position, SHLM. We could be all cash in seconds and net short. Stay focused you should get a buying opportunity soon.
Everyone is fixated on finding the next Apple, but look at this stodgy department store, Dillard’s. The stock rose twenty fold in twenty three months. Too bad I didn’t buy it. It’s been on my screen since $2.75.
Average Long Short Equity Hedge Fund Returned
True Religion Apparel is technically poised for a bounce. Anecdotal checks of inventory show little discounting which leads me to believe that XMAS season went well. The high-end consumer seems to have fared better than the lower-end demographics. Catalyst. The company will be presenting Wed at the Annual ICRX Change conference after the market closes on Wed. Could be a good bounce or more importantly a run-up into the conference in anticipation.
Our largest position is Visa which is 16.41%. This is an out-sized position and we will be reducing it soon one way or the other. We all know who Visa is and we think it is pretty clear that cash transactions are on the way to becoming extinct and Visa is the prime beneficiary of this secular trend. The reason though that we own Visa is that it recently dropped in price from 80 to 67- almost 16% in one sad day in December for Visa shareholders when Uncle Ben Bernanke announced that the Fed Reserve was suggesting that the … Read more
