Jay, how are the results going to be presented at the conclusion of the Long/Short contest? I think there should be at least an honorable mention for those who topped the S&P's year-to-date performance, and for those who topped the Dow, it would be even more deserved (count me out for that one--I'm sure we can smoke 'em from 7/1, but YTD is a bit of a hurdle). I would like the vote for Comeback Kid--from my starting point of roughly the 50th percentile, I'm up about 140 ranks from the beginning of the contest to close out so far at 56th place! I better knock on wood because there's one more day left.
I really like the concept of zero-exposure, and being able to squeeze out from it a profit that exceeds the return of a benchmark treasury.
Here's the portfolio:
techstocks.com
YTD:
DJIA: +19.1%
SP500: 8.4
R2000: 2.3
Me: 10.0%
Since 7/1 starting point:
DJIA: -1.2%
SP500: -3.6%
R2000: -5.2%
Me: +10.0%
We're making Alpha!
Rainier
PS. The theory behind my portfolio was to be hedged on an industry basis and to play what I call a "quality spread." Long AOL but short GEEK for example, or long SBUX but short CKR, and long CSCO but short CKFR (though this one doesn't match up too well). Given the less-than favorable long environment, it looks like the 2nd tier issues have suffered worse than the higher quality issues, and with zero exposure, that means money, and that's the name of the game. |
