Managing Funds for a Living

[paysense]

PRO Model Portfolio Update:

Performance charts will be updated tomorrow to give a perspective on these past 52 weeks. The "golden" bar or "value" chart is to see how varied the fund performs from day to day and to contrast that with the annual gain. Low day to day movement and high annual growth is our goal.

Some may not put much credence into "out-performance" versus the S&P 500 Index (especially if gains aren't very large, like for us in 2007), however some fund managers would agree that this is pretty much the only benchmark some of us can be measured by.

Yes, I've seen scalpers run an account up 300% in a given year - but can't tell you where their $$$ went in the ensuing few years. So yes, the market is a good benchmark for a mid- to longer-term perspective.

On that note, our Covered Call Fund has in fact handily beaten the "market" by over 30% in just one year.

Added contracts to C2 systems (names omitted per C2 policy) with equity growth - resulted in a bit of a pull-back. . .but the funds recovered nicely:

OK it's not that big of a deal and yes, I get excited - after all I like what I am doing and the results I've worked so very hard for. I always say that I am not deserving...but I am thankful

paysense

 

[paysense]

Performance Chart update (covered call strategy):


- Golden bar "value" chart (rolling 52-week, updated weekly at website)

Day-to-day fluctuations relatively minor (compared with 50% annual/multi-year average) for the life of this fund.

Ultra-conservative approach (stop-loss methodology) to reduce potential large drawdowns.

Optimal phases near-exactly targeted to provide an easy, exponentially ramped up gains (as depicted with each posted thread trade) provided to subscribers to learn (hands-on/trade-by-trade) from to become within 6-18 months like-wise experienced covered call fund manager.

If the market will allow us this time and does periodically provide opportunities as such, we will grow as high is the rallying phase will let us. Then minimize losses with the next correction and do it all over again.

How many manager's funds top the S&P 500 each year over many years? How we are doing and always do can be seen with each years charts. This current year is no exception. Even with an anomaly (2007) all the gains/outperformance we had hoped for will ultimately come right back to us - in a very short time period.

Lastly, what this fund manger actually benchmarks himself against. The Nasdaq or growth indexes - to which we continue to outperform every one of them with a seemingly novice, less-than strategy.

From this chart the investor and fund manager can easily see how one is stacking up versus the market compared with past heady gains. If the market is giving us so-and-so we should be doing so-and-so.

One could have easily seen past returns and been excited or wary or a combination of both. Then one could venture in with test cash (or paper) to see if, first off great losses would be avoided and in time 6-18 months if returns are on par with the market performance versus the past performance/market.

This straightforward approach can make one entirely confident that further traction wrt stated past returns are indeed being delivered. In just a short while more (3 months?) One can then call up the owners of the farm and bet 1/10th of it and realx watching the monthly reports roll in - whatever they say (even every month of statement 2007)!

There is a disclaimer here and that is said person is entirely dependent on fund manger's cooperation as there is no guarantee once the first say $3M is made that the next $30M will be provided. The manager may go on hiatus. Definitely a caveat. Furthermore, if one was serious all the performance charting software and in-depth analysis (really simple stuff and mostly averted by all subscribers) all the lessons could be learned in as little as 2 years to do said work by oneself. Very few care enough to do this;( but that is what I have all these years proposed to offer.

Many just want to jump in if things look good and whine and cry when things don't go well when they go elsewhere and abandon any discipline what-so-ever. You see all of last year's work on this fund is entirely necessary to get the full (my flavor) strategy under your belt. Inother words all that we did with little or no progress is considered by this fund manager as entirely spot-on and necessary to make this thing work for life: knwo how to manage in both "good" times and "bad".

Paysense

Sorry it was long-winded and probably not worth the effort on many, many levels. But oh well. It took me 10 minutes and unless I get provoked by the naysayers (that read every word) you do not have to read it all and well I'm done.

 

[paysense]

Let's try this...

The Weekly Newsletter is now posted as an attachment.

Not to offend, my posting is replacing the term hedge fund manager with fund manager.

Gilbert

 

[paysense]

Closing this trade (1/2 of our OSTK position) to "lock in the gain".

We entered 1/2 of this position ITM and the other 1/2 OTM. Since it is well-ITM there is little call premium left to gain.

<B>Monday, May 19, 2008
12:50 pm EST

Bought (1) OSTK Jun 20 (QKTFD) call option contract at $7.40 (ask).

Sold 100 shares of OSTK (Overstock.com, Inc.) at $27.05 (bid).</B>

Profit: 5.21% in 0.8 weeks

paysense

 

[El OchoCinco]

Quote from paysense:

Let's try this...

The Weekly Newsletter is now posted as an attachment.

Not to offend, my posting is replacing the term hedge fund manager with fund manager.

Gilbert

You are not offending, you are violating SEC law. I thought I made that clear and you should think about the free advice.

 

[paysense]

Now adding...

<B>Monday, May 19, 2008
3:15 pm EST

Bought 100 shares of JRJC (China Finance Online Co. Ltd.) at $24.80 (ask).

Sold (1) JRJC Jun 25 (JQJFE) call option contract at $2.60 (bid).

Stop Loss: $22.20</B>

paysense

 

[paysense]

With today's volatile jump and decline (+25 and -25, Nasdaq) our PRO Covered Call Portfolio has done remarkably well.

Many of the stocks we have targeted indeed have gone ITM - giving away about 10% in value - but with high-beta stocks, there are no guarantees. However, over time this particular flavor to the strategy has proven to do quite well.

In other words, with a strong market backdrop...we will take our 8-10% premium up front and compound it as often as we can from month-to-month - with a little leverage. To me this is the most comfortable way to headily outperform and make a decent and consistent annual average.

I finally slept well last night - after more than 3 months. Most likely this is due to the great anxious fervor that has built up since foraging into futures. It is a good thing, since it is like that feeling as a kid the night before you are going with your family to Disneyland. Just a whole lot of anticipation and excitement due to even loftier expectations.

. . .which is another all-time high for this fund!

paysense

 

[paysense]

I guess you have to take the good with the bad,

OK, three systems on this list,

Frequenting now this list,

But didn't want to get here for a while. It indeed seems that going from $96.8k to $92.9k is in fact a 4% decline. Not bad considering at intraday highs we were at 103k+!

I'm supposed to be the mathematician, so tell me is a larger drawdown to be expecting with most larger annual percent gainers? I am thinking, YES!

...and to be entirely consistent - complete names are omitted per ET policy. We are talking in general terms here - not specific (paid) advertising

GilL aka paysense aka Ps$3nSE

 

[Emilio_Lizardo]

Quote from paysense:
Now let's move on to the market's impact these last couple of days to one of my most popular C2 systems

Most popular? In what sense? How many paying subscribers do you have? Any at all?

Gil, all of your systems have gone into a drawdown at once. You have no diversification to speak of. The point of different systems for a fund manager is to quietly fold the losers and trumpet the winners. If all of your systems rise and fall of a piece, you can't manage that.

You've got the outer form of fund manager diversification, but you are missing the essence of it. Like a cargo cult control tower, it just doesn't work.

 

[paysense]

Waz'up Emilio:

You are right..."Popular" in this instance may in fact be relative. KC "L" may have a few "views" more than KC "E", therefore prompting me to deem it as my "more" popular system.

It seems that after just 2-3 months, I am only now gaining a bit of traffic (and yes, paying - after 30-day Free Trial - subscrbers). I will now be placing an ad at the Collective2 homepage (Featured System), whereby systems quickly gain "popularity".

However, you will find KC "L" as deemed by C2 as "popular" amongst futures systems, for now.

Yes, my systems have strong correlation as they are all currently LONG e-mini futures contracts. The only diversification is that they vary in margin leverage - with a different blend of contracts in each.

On that note, an interesting new feature from C2 is their algorithm that allows you to smooth out DD by choosing from a selection of other vendors systems that have a correlation to achieve just that.

What you see is what you get. A much lower risk approach to a very good annual average with a (proven) covered call system. Back that up with an much higher annual average using a smaller allocation of margin with e-mini futures contracts.

Either way, these "systems" VERY MUCH do track the major market indexes , but with the futures trades gains will be made in a downtrending market - whilst my covered call fund will simply remain in cash.



Sorry Emilio, that is all I have been able to achieve up to this point in my "career", so no. . .in the strictest sense of the term I may never be truly deemed as a "Hedge" Fund Manager.

paysense