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view the rest of the postsWe "suspect" einhorn is 100% hedged above $26 or so. As noted, we think recent long call positions are hedges of the recent run up, including yesterday's fleeting surge.
I guess thats the difference between the "pro" and me.....the guy killing it.....how many "Pro" traders made 100% this year?
ive made 1100% this year, that includes all bad trades.
today, sold my calls i bought yesterday near the close, sold at the opening pop
sold my KORS calls also at the pop at the open.
bought SINA calls at the dip this morning, sold near the top and bought back again.
let me see,from yesterday to today, about 6 clean trades.
and an increase of account value of 75%,
and im supposed to stop doing this?
I know why people hedge, because they arent sure if they are right on the trade.
guess what, when i enter a trade. im positive im right, and if im not i get out if i am right i get out with a profit before some jack wagon takes it back.
ill take my 1100% gain this yearover any wallstreet pro !
and i havent even included my gains for this week, i only take a bi weekly snap shot, of my gains.
thanks but, ill be here alot longer then the guys that need to "hedge" because they dont know what wat is up, or down.
Sentiment: Strong Buy
okay so they are hedges by the shorts.
if the shorts were so certain in ythe downward movement, why hedge?
Hey pepperoniandmushrooms, don't quit that regular employment anytime soon. LOL
Your question:
Why do quality hedge fund managers hedge their positions?
Answer:
Because knowledgeable professionals understand what they are doing (taking risk to generate outperformance, and hedging outsized risk in case their position doesn't work out as planned). Most retail investors don't hedge anything, which is why they destroy their capital when things don't work out as hoped.
That is not to say all hedge fund and other portfolio managers know what they are doing. Some 3k registered hedge funds have folded since mid 2008 and likely twice that number of unregistered investment partnerships and similar/offshore entities have lost their capital due to lack of quality hedging.
Now get that pizza delivered before it is cold or you won't get any tips today! LOL
oh and ill be glad to prvide documentation, but for the trouble the cost is $1000 for me to stand in front of a fax.
Sentiment: Strong Buy