tag:blogger.com,1999:blog-2335748440449035592.post2502783049131855221..comments2008-03-02T16:28:56.625-05:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2335748440449035592.post-73569212347235255102008-03-02T16:28:00.000-05:002008-03-02T16:28:00.000-05:00Thanks, Mark. It does take a great deal of time to research 50-60 positions versus sub-10. I used to be too focused in my selections but am trying to diversify more. Hence, your blog is a very nice source of ideas for potential new positions. Thanks for your research and keep up the good work!<BR/><BR/>-BDBluedoghttp://www.blogger.com/profile/13620622716492473197noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-32646178094207723392008-03-02T16:15:00.000-05:002008-03-02T16:15:00.000-05:00Quite a few reasons. <BR/><BR/>First, I have no idea which strategy, my own (which is shorter term in nature) will do better in the long run (5 years from now). Whose to say I am not doing better in my personal account than I am doing here? :)<BR/><BR/>Second, to mimic this strategy takes a lot of capital. For example I generally run 56-60 positions. To have only $1000 in each would be about $60K. And then when I cut back a position by 10-15% which I do a lot, it would make no sense in this size of portfolio. The commission costs would eat up all the gains. i.e. $1000 position, cut it back 15% is $150. Commission cost eats up 5%+. So without scale it would not work.<BR/><BR/>Next, this is how I would run a fund, which is not how I'd run a hedge fund necessarily.<BR/><BR/>Next, there are times I am 60-70% short in my personal account which I never am here. That has proven to be fruitful at times the past 6 months. Whereas this fund is run with a long oriented focus, to be comparable to mutual funds in the public domain.<BR/><BR/>Last, I have found over the years many times a nice stock but sold too early - using this strategy in the fund lets me hold on to those. For example, Gafisa is an interesting stock that could be quite a winner over next 5 years but I have yet to own it in my own account. Or Ctrip.com is a great example of something I did own - but wish I had never sold out as I have traded it but it has been better to just buy and hold for the years. On the other hand, other positions I am glad I sold out because after a nice run they withered. So again, who knows what will be the best strategy, but I am trying to run this as a replica of how I would run real money, in a more conservative fashion, and with a bias to the long side. Not necessarily how I run my own account.<BR/><BR/>In the long run it will be a moot point because I plan to put most of my liquid investments into the mutual fund if/when it happens. But I think for most individual investors 50 positions is quite useless - I am generally in 4-8 and I think for the average investor 8-15 is the most they should have - it is too hard to keep up with all you need to know unless you devote a ton of time each week to each position. Most don't have that inclination or interest or time.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-15949965277552414382008-03-01T15:22:00.000-05:002008-03-01T15:22:00.000-05:00Hey Mark,<BR/><BR/>In reading your blog I've noticed your fund positions do not necessarily match your personal positions. Why is that? It seems your Rising Tide Growth Fund is doing extremely well. Why not mirror the fund exactly with your personal account and put some capital behind it? Or do you prefer to keep it virtual as an experiment?<BR/><BR/>To be flat or YTD positive in an environment like this is a huge accomplishment!<BR/><BR/>Cheers,<BR/>BDBluedoghttp://www.blogger.com/profile/13620622716492473197noreply@blogger.com