Reggie Middleton's BoomBustBlog research outperforms, by a wide margin!

Let's contrast the worst year in recorded hedge fund history to the past year and year to date results of the model portfolio built upon the BoomBustBlog.com research and opinion (as of 9/26/08). Hedge funds charge a lot of money, but  their performance has beaten the broad averages of late, and the better ones outperform the broad market in general. But!!!! There's always a but, isn't it? There are better ways to skin a cat. Let's take a look-see.

 As you can see, if one were to buy or sell (short) the stocks opined accordingly in this blog's downloadable pdf reports the first trading day available the reports were released, and simply held the position until today (to be referenced as the "blog model"), you would have thoroughly trounced the S&P500 broad market and outperformed the Barclay's Hedge Fund Index by considerably over 50x, not to mention positive performance while the hedge fund indices and broad (US and global) market indices were negative! My proprietary trading account is primarily buy and hold in principle, but the extreme volatility in the markets has forced me to do some trading. I also make very heavy use of options, risk management, cash management, etc. and I am not afraid to use leverage, although I have not utilized any for over a year. This has allowed me to set realistic ROI goals approaching 400% (unfortunately, I cannot discuss my actual personal performance). After getting to know some of the blog users a little better, I have come to realize that many could benefit from trading (or at least buy and sell) guidance. I have been reticent to give such for a variety of reasons, but I am pondering several solutions that can help my consituency.

If one were to extend the horizon to one year or past, what would the outcome be?

 The blog's research model outpeformed the hedge fund index by over 33x, and the broad market index is not easily comparable, with nearly 100 percent spread in performance. I would consider this dramatic, indeed.

If we were to parse through Barclay's index to search for outlying overperformance, would it compare to this blog's staid "model"? Let's see...

Year to date:

The closest runner up is the Short Equity Bias index, wiht a mere 27% of the blog's research model performance. If we look back for an entire year...

The second runner up inches slightly closer, but still now cigar, 32% of the Blog's research performance. For those that are wondering, over 2,600 funds report to this index. So, I ask, should a blog charge 2 and 20? 

We have started receiving our first few institutional clients, a few of the very large global banks are coming on board. I would expect to see a lot more soon.

Update on the next phase of my investment thesis

The positions taken on the "next phase" companies opined on have returned handsomely. Smithfield Foods has been a standout. 66% percent of my position was popped out due to hitting my (way out of the money) profit targets. The remaining position has returned many multiples.

This serves to bolster my conviction in the thesis, but dampens my spirits, for the veracity of the thesis is predicated upon rather dire economic events unfolding. I have decided to release the Smithfield report to non-paying subscribers and the general public due to the amount of price movement that has already occurred, and to exemplify the quality of research that my team has produced in this sector that is a universe away from the financial services, insurance and real estate that we have been covering for the past year.

I would like to add that the Navistar report should have enabled those who believe in the research to take advantage of the big pop emanating from the surprise earnings announcement. Any who did were handsomely rewarded. Feel free to download Smithfield Foods Professional report here: SFD_Pro Report_Final_240908 (286.98 kB 2008-09-25 01:32:23)

There is a lot of content on tap, and coming very soon. The bankruptcy candidates are also on their way...

Here is a listing of the companies opined, and a a link to at least one of the posts containing an opinion. The column on the far right refers to those companies who I performed an actual forensic analysis or deep study on. The coluimn to the left of it simply lists all the companies mentioned. Be aware that I may mention a company without feeling strongly enough about it to take a position. 

The timeline of BoomBustBlog analysis 

A verbose listing of posts and articles concerning the stocks above can be found in "More on the accuracy of this blog's research " and a compendium of recent yet pleasant emails to the author can be found here: Some pleasant emails. Click the following link to Subscribe Now!