Investor Spotlight

Sunday, April 29, 2018

Fire Your Hedge Fund Manager N Learn From Me

I am bound to cause quite an uproar with my heading today. Some of the hedge fund managers and my followers are going to take an offense. Some retail investors and traders who have invested their 401K's and IRA's in mutual funds will be offended by my headlines. I feel it as my duty to share with my readers the data that I just scanned from the "Barron's" magazine this morning. I am an avid reader of their publication for over 2 decades and I trust the data they present in their publication. It is always well researched and presented without a bias.

Barron's published a list of the top 100 hedge funds and their performance details. What disturbed me was the average performance of these top 100 hedge funds in 2017 as compared to the general broad market as measured by the $SPY was:

Hedge Funds ... + 17.78% (not including their fees)
$SPY ... + 21.82% (no fees)

73% of these top 100 hedge funds actually underperformed the $SPY

What?

How can that be?

They claim themselves as "Smart Money".

Why would you want to invest your portfolio with a hedge fund? You ought to ask that question of your hedge funds. They actually have the nerve to charge you a fee of 1% to 1.5% of your account for underperforming your account by -4.04%. If you have a portfolio of $100,000, you are essentially paying them $1,000 to $1,500 to help you lose another $4,040 from their lack of performance. Retail investors and traders are a whole lot smarter than the hedge fund managers. 2017 was the least volatile year and we never had more than -3% correction. I had been highlighting all year long in my blog posts that $QQQ was the leading index and $XLK (Technology Sector) was the Leading Sector. Investing passively in $QQQ from taking the clues from my weekly blog posts would have nabbed you +31.47% (+50% higher returns than the $SPY)

Mentoring Program

Do you know how to handle your stocks in this volatile market ?

Do you know how to place trailing stops at appropriate levels and harvest your profits when the market is in correction?

Do you know how to scan for Growth Stocks that will lead the market when institutional selling ceases and you have a "Follow Thru" day?

Do you know how to read the market?

Make a commitment to learn NOW. Investing in hedge funds and professional money mangers is the very wrong thing to do. Now you have the unbiased data to make a decision now to learn from me:

How to TIME the Market?
How to find the Winning Growth Stocks?
How to Buy the Stocks Right?
How to Plan your Trade for Profit, Loss and Time in the trade?
How to Sell your Stock Right?

Classes for May are filling up fast. We have just a few slots left. They will be on a first come first served basis only. Hurry and secure your spot before they all fill up this week. Schedule a FREE 30 minutes of "Discovery Call" with us and see how best we can help you become a consistent and a profitable trader and an investor in 2018. Don't procrastinate and pass up the opportunity of making a difference to your portfolio. Start out now with a resolution to invest in your education.