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Strategies & Market Trends : NEUTRAL TRADING STRATEGIES

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To: john hensley who wrote (10)10/11/1996 11:09:00 AM
From: Ralf Toumi   of 18
 
Dear John,

Your story is interesting. However, I still think that there is something usefull in the condor (actually, it looks more like
/---\ rather than \---/ , take your pick as to what looks like a Condor). Anyway I am having difficulty in seeing how the Condor
tripled your money in a year. My Broker who runs this neutral
fund seems
to be doing 10-15% return per year.

I think you must have been over exposed
and this is what caught you in the big bull 95 ??

Last year is proabably as unusual as Oct. 87. My point is that with a decently low exposure you may still have come on top. Do you think this is true with hindsight ?

Ralf

PS The point is not to beat the market but to diversify out of one
way bets. In the next bear market, cash will easily "beat the market".
It is all a question of time spans.
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