Grizzums
11-05-2007, 01:02 PM
I am managing a virtual fund, equity, and wondering what folks use to hedge their downside risk. My fund is a long fund and I cannot do any shorting with it so I have been using inverse funds (short) when internals indicate volatility and downward movement....
I try to use the appropriate inverse funds to match the greatest percentages of my allocated equities.
I am not sticking to either growth or value strategies but mixing it up a bit as I see attractive opportunities. I am using fundamental analysis both from a micro and macro perspective to pick sectors and individual securities. I am trying to use tactical sector allocation more than individual security picking to maximize returns. I am using technical analysis to determine entries and exits but with how the find trades, this is difficult and I I am having trouble finding enough time to manage real effectively so I guess I'm just going to try and do the best I can under my circumstances.
I do hold a core of "best of breed" securities currently in what I deem to be attractive sectors but will try as I readjust and rebalance to hold positions that are more under the radar so I don't have to pay "best of breed" premiums.
I am also trying not to overdiversify. I have a $mil fund and plan on holding no more than 40 securities at any one time....id like to keep it around 30.
I don't have my sector allcated percentiles in front of me, but I am primarily tech, industrials, energy, and to a lesser degree, materials right now....
How do you personally hedge?
In my personal portfolio I do like to find competitors within a given space where I find one fundamentally undervalued with the other overvalued and I will go long one and short the other....but I can't do that in this fund.
Anyone want to share some strategies in this area?
I also have questions about sound portfolio alphas and betas but ill save that for later.
Thanks.
I try to use the appropriate inverse funds to match the greatest percentages of my allocated equities.
I am not sticking to either growth or value strategies but mixing it up a bit as I see attractive opportunities. I am using fundamental analysis both from a micro and macro perspective to pick sectors and individual securities. I am trying to use tactical sector allocation more than individual security picking to maximize returns. I am using technical analysis to determine entries and exits but with how the find trades, this is difficult and I I am having trouble finding enough time to manage real effectively so I guess I'm just going to try and do the best I can under my circumstances.
I do hold a core of "best of breed" securities currently in what I deem to be attractive sectors but will try as I readjust and rebalance to hold positions that are more under the radar so I don't have to pay "best of breed" premiums.
I am also trying not to overdiversify. I have a $mil fund and plan on holding no more than 40 securities at any one time....id like to keep it around 30.
I don't have my sector allcated percentiles in front of me, but I am primarily tech, industrials, energy, and to a lesser degree, materials right now....
How do you personally hedge?
In my personal portfolio I do like to find competitors within a given space where I find one fundamentally undervalued with the other overvalued and I will go long one and short the other....but I can't do that in this fund.
Anyone want to share some strategies in this area?
I also have questions about sound portfolio alphas and betas but ill save that for later.
Thanks.