Thursday, 23 October 2008 02:00

Blog vs. Brokers, preview

In the past week or two I attempted to debunk the "'Name Brand' is the best" mentality of so many individual and INSTITUTIONAL investors enamored by the marketing machine that is the Wall Street banks, brokers and Greenwich hedge funds. In attmepting to do so I have released this blog's research model results, a glimpse into my proprietary trading, a backgrounder on my investing style, and a comprehensive comparison of both the blog and my results as compared to all major (and minor) hedge fund indices.

Now, I will be moving on to the big money center banks and brokerages (or at least what's left of them). Some time tomorrow, I will release a comprehensive comparison of my blog's statc research model against the timed buy/sell recommendations from all of the big bank/brokerages.No excuses made for disparities in budget, resources, political conflicts of interest, etc. Be aware that I refrained from giving explicit buy and sell advice (except in the case of Bear Stearns where I inadvertantly shared my opinion), which has handicapped the blog's results in cases where stocks have dropped and then risen again, ex. PNC. If you click the "proprietary trading" link above you can get an illustration of the results possible when this blog's research is used to actively manage positions.

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Holding period return
GGP LEN MS PNC * Average
Citi 49% -16% -71% 5% -8%
Goldman Sachs -89% 59% -70% 7% -23%
JPM -87% -76% -71% -78%
Morgan Stanley -10% -10%
Reggie's return 162% 125% 117% 1% 101%
* The brokerage recommendations benefit from timing, where the blog is pure fundamental research timing made a big difference in the PNC call, where my proprietary results are significantly higher. PNC had fallen nearly 50%. Of course, I expect PNC to fall much further .
Last modified on Thursday, 23 October 2008 02:00

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