How I run a "fund" is a bit different than a personal account - I can be more nimble and be totally in and out of a position in a personal account. In the spirit of how I'd manage $300, $400 million of money I try to show a style that would actually be scalable to that dollar amount. So I tend to move in layers, in and out of positions here rather than wholesale 100% in and 100% out.
I like to call the fundamental strategy, core & edge. Keep core positions and trade around the edge.
- At heart I like solid fundamental stories showing excessive growth (bottom up analysis); which generally leads me to mid caps or larger small caps.
- Use macro economic views (top down) to focus on what groups to favor or disfavor
- I use simple (basic) technical analysis to hopefully provide entry / exit points
- I have both long and short positions; the weightings are based on viewpoints of the market at the time
- Cash is not evil; it is an effective tool in bear markets
- Time frame is dependent on the type of market - I tend to be a trend trader and like to focus on relative strength. However in the markets of 2nd half 2008 and early 2009 this strategy (or in fact almost any strategy with holding periods longer than 5 days) has not worked - so we're making adjustments until the market returns to a more normalized behavior.
