Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (28946)	11/12/2007 9:47:39 PM
From: Madharry	Respond to of 78751

OT I took a quick gander at the Och-ziff prospectus for the new hedge fund ipo. I thought it curious that its largest hedge fund comprising over 60% of the AUM had underperformed the S&P500 in total return net of fees over the past 5 years. I surmise that hedge funds have seen their days in the sun and that now that the oversize returns have been made its time for senior management to cash in their chips. I think Ill pass. why not put your money with buffett?

To: Madharry who wrote (28946)	11/12/2007 11:31:18 PM
From: Paul Senior	Read Replies (5) \| Respond to of 78751

Madharry, it's been a bad weekend and a bad day for me in terms of worry and fret about my Etrade portfolios. Not so much that the portfolios are going down. They've been dropping for a few days; this market action today is just a continuation of it. (Brutal in the oil bidness sector) Just kicking myself for my inactivity in not doing something about my Etrade accounts. For a guy who is always saying diversify, diversify, diversify, I really played it wrong not diversifying my portfolios among more brokerage firms. Ha! It never really dawned on me, I would be worried about Etrade. Jeez. :>/ (wry grin?) It was one area where I did not adequately consider my susceptibility to perceived risks, real or imagined. I just became concentrated instead of diversifying because of the better costs and better service for being a large account holder. As Etrade was doling out their bad news, I suggested elsewhere that people with large Etrade accounts ought to consider reducing commitment to Etrade, or failing that, at least shorting some ETFC as a hedge (at another broker of course). But I didn't act on my own opinion. Grrr. I suspect nothing untoward will happen to large brokerage accounts when ETFC goes under (which I am now envisioning). And I have more confidence for those who have smaller accounts which are within SIPC. Maybe at worst some delay as the bankruptcy judge and various parties figure out what they'll do. (Probably short delay since it's to the industry's advantage to resolve things quickly. OTOH, it's up to a presumably disinterested person, a judge, to make the final decisions.) Which is okay for me for most of my stocks in Etrade, which I hold long-term and really don't want to sell. Otoh, though, in this volatile market, it's dangerous and maybe scary not to be able to move in or out when you want to. And then of course, there's just "why take such a chance on the outcome of Etrade when there's really big money (my money) involved"? So I've been selling lots of stock today to reduce my portfolio to a more acceptable risk level for me vis-a-vis "the Etrade situation". This of course though screws up my positions and my tax planning (gains/losses) for '07 and '08. Not to mention it ain't such a good time to be selling today. Cripes. Anyway, I've been getting rid of many stubs, losers, stalled-outs, non-performers, moderate gainers, trimming bigger positions, etc. Some small positions that were held more than a decade. Pulling out cash. Just feeling pressure to do this. My issue. Just the way it is. OTOH, sometimes it's good to clear the air and start afresh. I can - and likely will - rebuy some positions quickly in at another of my brokerage accounts. And of course, I'll be looking for one or two new brokers. Some though - Schwab??? - may be facing the same issues as ETFC (Schwab looks better capitalized to me, although who knows what any of these guys who are under competitive pressure have done to enhance their returns? Actions untaken which might now come back to sink them.) My financial life got little discombobulated now as I re-plan what I might do. My guess is that anyone with an Etrade brokerage account that's within SIPC insurance limits will be okay with that account if they have stocks they want to hold on to. I intend to fit myself into that category, and I will ride into 2008 with a large - just not so large as Friday - portfolio at Etrade, whether ETFC goes bk or not.