Tuesday, December 10, 2013

Performance Update

A quick update on performance to the start of December. I've been lazy in doing this, and it hasn't helped that I've been writing with a fractured wrist for the last two months. With that said, here is the portfolio performance vs. the S & P 500.

I'm hedged and leveraged. It's an absolute return strategy which shouldn't really be benchmarked against an index, but here you go anyway. Blue line is me, red line the S & P 500.

And for those who know, or care, about absolute returns.

An R^2 of .09 pretty much implies that the index doesn't really have much to do with my returns, but hey, this strategy hasn't been tested out in a bear market yet. I strongly suspect that stock correlations jump in a bear market, so you need to be careful not to be underexposed on the short side.

I'm pleased with the performance overall, although 2013 has been a frustrating year with a couple of horror months in it. However, I can't complain.

I'm highly cognizant of the stress levels I am under. After all, going and living in foreign countries on my own, constantly writing, researching, investing in a leveraged strategies, and finding time to cad my way around, isn't easy. There are times when I wonder how much longer can I do this?

On the other hand, I know I must. There is no other choice. Stability never presented itself as an option for me, and to paraphrase Hyman Roth, this is the business I have chosen. I've spent time in eight different countries this year, had adventures, and made some money. I feel I'm making progress on life, and feeling happier. That's the important thing.


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