I have decided to write about my portfolio, managed somehow like a macro/discretionary hedge fund. I would like to publish letters and performances in order to build a public track record. The fund will be named Pedge Fund.
I won't have the time to achieve a good result and long letter for this October, but the good news is that Pedge Fund is up quite substantially this month (and YTD). I haven't build a proper NAV and brokerage fees/expenses/interests/commissions systems yet (and if you know a good system to deal with all this, I am a taker!), but I have calculated a gross performance for October of about +10%
Please note that I am not managing the portfolio as a full time job, so the performances are affected by this (probably negatively, as in October, I wasn't in front of my computer when most of the action took place and missed several great opportunities...). Anyway, that's life!
Pedge Fund USD
October performance: +10% (gross, approx)
Year to Date performance: +45% (gross, approx)
The portfolio was about 150% short US indices in October, and another 70% short in notional terms with Puts on the Dow Jones bought when the Dow was flying at 13,000 points and 50% long stocks and another 50% long commodities (mainly precious metals). About another percent of performance is attribuable to short term positions (holding of about a week).
Obviously, the commodities and stocks took a big hit in Pedge Fund.
I progressively reduced the short exposure and closed the major parts of them on the 21st of October (a few days to early). I still have some puts on the Dow, and will probably buy more of them and maybe go short if Vol gets cheaper and if the Dow and other indices keep on raising on nothing but bad news. The US indices rallied for about 25% from bottom in October to top last week. This is huge. Let's see if the trend has been reversed or not before getting in too early.
If you think it's a good idea to publish this information, or if you think that you would like to hear more info, please let me know. I might also consider marketing the fund at some point, so please stay tuned, and if you are interested in seeding, let me know :-)