Down 2.44% in one day!!!!! Damn it...I knew to sell the POS. As the market moves higher this POS will continue to go down. This is a like a MM with a slight bear bias. No other way around it. Hussy should have protected our recent small gains but no. Half a year return wiped out in one day. Damn.
Today's drop is no doubt a bitter pill, but hard to blame a guy who gets something so incredibly right only to have the rug pulled out from under him by his own free market government. Ouch!
Yeah I'm surprised he didn't have the old .5% of assets in out of the money call options just in case the madness ended. Oh well, I suspect he'll be vindicated, but did he have to be so flatfooted here? It was mostly the underweighting of financials that killed him today. Outlawing shorting and nationalizing banks = XLF up 12%, that hurts. It'll come back to bite them (and us all) in the end.
No, because stuff like this happens the next day. Don't want foot in mouth - LOL. I guess it didn't drop below the recent trading range enough for him to make a ST move (see this week's WMC, Market Climate part near the bottom).
I haven't read the weekly column in a while. My own impression is that sentiment has not gotten black enough to warrant a lot of buying here.
This is OT, but that MS is begging someone to step up and and buy the company is pretty shocking. The only thing I can figure is that they see their share price heading below $5 in the near future. Better to do the dirty deed now while the share price is still in the $20 range?
I just don't get the whole concept of selling yourself from a position of total weakness. Where are your bargaining chips? A move like this reeks of despair. These guys would not last long at the poker tournaments in Vegas, that's for sure.
Its astounding. I expected Hussie to fall but good today - since his turkeys such as AMZN, RIMM, WCG all fell much more than the S&P.
He must have used his "staggered strike prices" in the hedging part of the portfolio to make up for his holdings doing so poorly.
What a guy.
Yeah, the only way you can get that kind of leverage during a drop like today is to have some puts that are well out of the money (assuming a limit of 1% of assets to be used for hedging).
I don't understand why the fund owns any MSFT. A stock like MSFT is the software market, and its growth is constrained by the economy as a whole. You'll be lucky to get low single digits over the long haul with a company that large. I could talk about the flaws in their business model (which is antiquated) but that's beside the point. The company has more cash than it knows what to do with. They burn piles of it every year. Why not just buy a ton of BRK or GE or XOM?
fwiw, I don't see any WCG in the top 25 holdings.
Aside from the fact that I don't like or understand some of his picks (MSFT, CSCO, INTC), the point & figure chart (traditional 3-box reversal) of HSGFX is very unique in that it consists of a single column of Xs spanning a time frame of eight years. I doubt if there is another stock fund in the mutual fund universe that has gone eight years without posting at least one reversal. HSGFX is an outlier in terms of lack volatility (swings up and down).
If I were going to classify this fund with a single word, it would have to be tortoise in the sense of the old parable. Slow and steady.