Sorry for lack of responses. I was at a very busy conference that was chalked full of meetings upon meetings and some socializing. The conference went very well and was a great opportunity for internal team building and realignment of the company goals. Was happy to be there.
Volatile times. Since December, SPX has lost 5%, gained 6%, lost 5%, gained 4%, lost 4%, gained 4%, lost 4% and now gained nearly 5%. The whipsaw isn’t great for our protector portfolio but it’s not doing too bad despite.
TLT -5.44% on the week which really hurts our momentum and pair trades for February. Let’s see how it does next week. A strong January for the portfolio is leading to a weak February at least so far. That’s mainly due to a terrible day for VNQ and TLT which is 66% of our momentum portfolio. They were down 3% and 2% on the day. A bit of a rebound in Both would do fantastic for the portfolio.
I’ve decided to invest a small portion of capital into the covenant optimal fund. It’s a 5x version of their classical fund and operates on 80% volatility. It’s a managed futures fund and would complement my portfolio very nicely especially as crisis alpha. I’d highly suggest listening to some podcasts of Scot Billington the founder. The thing I like is the low tied up capital required to obtain high return (with high risk of course). Remember it’s a 5x version (5x leverage essentially). You’d use 50k to represent 250k of risk. Lower tied up equity etc
Results for 2014:
*note: this is a very volatile version of the classical fund which returns approximately 14-15%. This version is extremely high volatility but you assign an equally lower amount of equity.
Some pics of London Town
