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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (6663)	10/18/1998 5:47:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 44573

Repeating that issue about asset allocation, imagine if you had a client that had a quarter million in the Fund and you suggested (rather than have him liquidate) that he sell a contract as a hedge and the market went up. You would guess that everything is everything because the contract was just a hedge...but as it turns out it's a hedge against a cash position so your client was not hedging, he was gambling. Obviously this would be a scenario for the more sophisticated investor or client but no matter how one looks at it paying fees NOT to be invested is a bit of a rip off. If the guy could go so deeply to cash there must have been an alternative; offsetting positions of some sort such as options to reduce downside risk. As for size, if I recall correctly the Funds had about 12 Billion invested. He went to 80% cash so he chilled out over 9 Billion in roughly a month, I think it was.