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Strategies & Market Trends : Portfolio Protection + Money Management for the Long Term -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (3)	4/8/2000 2:04:00 PM
From: BDR	Read Replies (2) \| Respond to of 57

Here is the portfolio that I am trying to hedge: JDSU, QCOM, OPTX (to be acquired by GLW), SEBL, SDLI, CSCO and NT make up 67% of my holdings. No margin. I arrived at those positions by looking for opportunities in the broadband/fiberoptic and wireless sectors and more recently by reading the Gorilla Game and the thread on SI devoted to the GG (URLs given earlier). When I first entered some of these positions last Fall I experienced a mixture of joy and surprise as the whole tech sector took off on a fairly steady upward march. However, with that much exposure to the tech sector it has been a wild ride since the first of January. In early March I began to wonder how best to hold on to what I had gained without trading in and out. I still felt that the long term prospects were good for most of the stocks in my portfolio. Believing that I cannot time the market, the best approach still seems to me to be to identify strong companies in growing sectors and hold on until that perception changes. The first week of April was a test of will. The experience of the last few months has driven home the point that even the best stocks will get taken down with the market. Given the valuations of some of my holdings there isn't much room for error in execution by management so I have resolved to watch the individual companies closely and see what I can do about market risk. I would encourage posters to give the thread a general idea of what flavor portfolio you have so that we can all see what the different approaches might be to hedging. I assume, but don't know, that hedging an all internet portfolio will be approached diferently than a Dow Industrials portfolio. I am here to learn along with everyone else. At present I am unhedged unless one counts the small amount of cash held in my accounts.