Hedge fund tactics for Long Term Profitablity

[NVP]

hey all

I am stepping a little out of the Forex arena and want to look at building a sustainable long term income return for some savings I have ..........

I will be looking to research/test some momentum based investment systems utilising the main markets and also experimenting with fund allocation as well...

Bonds
Equities
Gold
Oil
Other Commodities
Cash

and I will probably dabble a little in Forex as well if opportunities present (cant resist !!!)

Can anyone recommend some decent reads ?.......I've started back into the mainstream financial forums for some research as well ...........Moneyweek keep pushing the Tugboat trading system under my nose but I looked at it and its pretty basic stuff so I think can do better than that .......although the principle appeals re following the big % movers in investment trusts and other low cost investment vehicles .......

my aim will be capital protection first and foremost with hopefully some decent % returns regardless of the main market benchmark performances .....I am after some consistency here

answers on a postcard :smart:
N

 

[scose-no-doubt]

I'm not going to be about much but if you set up a private thread I'll get involved in this.

 

[barjon]

Buy big cap equities with decent dividends (re-invest). Never sell, but pro-rata hedge with indices futures when going gets rough until the storm passes.

 

[NVP]

Buy big cap equities with decent dividends (re-invest). Never sell, but pro-rata hedge with indices futures when going gets rough until the storm passes.

yep............you read my mind B.......just got to manage all the transaction costs but still heavily researching the subject

thanks

N

 

[scose-no-doubt]

I had something else in mind. I don't see how you plan on doing that with retail funds. you'd probably earn more putting those hours into a minimum wage job.

 

[NVP]

I had something else in mind. I don't see how you plan on doing that with retail funds. you'd probably earn more putting those hours into a minimum wage job.

so what do you have in mind S ?...........I'm new to this area of the game

N

 

[scose-no-doubt]

something based on mpt and rebalancing flows. it's all wip atm though. I'll PM you when I got my thoughts sorted out as I'm quite busy these days.

 

[Jack o'Clubs]

Those Tugboat guys seem to be all over the media at the moment, perhaps because they're retired old boys they're seen as more honest than Darren Winters and other get-rich-quick types. They come across as having their hearts in the right place, but still charging £25 a month though... From what i can see it's a simple momentum strategy that will work well in periods when momentum strategies work well, and at other times you'll get whipsawed to death I would guess.

The problem with adopting a hedge fund strategy is... which one? Relative value arbitrage? Beta neutral equity alpha? There are almost as many strategies as there are hedge funds (100,000 apparently...)

If you're doing something long term then personally I think you have to adopt a value approach, Ben Graham style strategy. If you really want to be hedge-fundy you could long them against a relevant index short. Somewhere between 10-15pc should be possible if you know what you're doing (before any leverage).

Bon chance!

 

[teflon142]

I am testing a beta-neutral equity idea in a Journal. Details are scant at the minute because I'm still trying to piece the whole thing together, but it might be of interest to you?

 

[cablemonster]

hey all

I am stepping a little out of the Forex arena and want to look at building a sustainable long term income return for some savings I have ..........

I will be looking to research/test some momentum based investment systems utilising the main markets and also experimenting with fund allocation as well...

Bonds
Equities
Gold
Oil
Other Commodities
Cash

and I will probably dabble a little in Forex as well if opportunities present (cant resist !!!)

Can anyone recommend some decent reads ?.......I've started back into the mainstream financial forums for some research as well ...........Moneyweek keep pushing the Tugboat trading system under my nose but I looked at it and its pretty basic stuff so I think can do better than that .......although the principle appeals re following the big % movers in investment trusts and other low cost investment vehicles .......

my aim will be capital protection first and foremost with hopefully some decent % returns regardless of the main market benchmark performances .....I am after some consistency here

answers on a postcard :smart:
N

I suggest you contact an IFA, one who specialises in investments and has 10 years + experience. Be aware anyone giving advice on an internet forum should be suitably qualified and regulated, its an offence not to be. Go on unbiased.co.uk and meet up with 3 investment IFAs, most work for a 0.5 to 1.0% annual fee. Good Luck

 

[Purple Brain]

Many hedge funds seem to be having a rough time of it over the last few years. The stellar performers barely posting double digit gains and investors leaving in droves. Apart from that particular market space having become too crowded and the fees ridiculous in comparison to returns, there are basic economic factors which suggest there will be no turnaround to their fortunes any time soon. Low interest rates means most commodities are currently over-priced. Emerging markets are stalling. Oil demand has peaked. Venture capitalists are sitting on piles of debt or at best low-performing assets and are desperate to sell out at virtually any price. It’s a tough call in an already complex situation to know what is likely to happen next.

The historically highest growth industries of Aerospace; Satellite, comms, telecoms; Scientific Research; Energy; Transport; Manufacturing; Engineering have recently lost Construction and Information Technology from their fold. So I guess buying into those remaining isn’t a bad bet.

However, this begs a couple of questions NVP. If you’re looking to grow ring-fenced savings like a hedge fund, why don’t you find a fund that’s been consistently performing well and invest with them? I don’t think many will be turning away investors of any size. Plus, why not utilise those funds in your FX trading? I appreciate it’s not risk free, but surely over the long haul you’ll beat any of the hedgies and by some margin. You also wont have to pay any fees.

 

[scose-no-doubt]

I thought this was an idea whereby you'd be looking to capitalise on what hedge funds are doing rather than employing a hedge fund type strategy?

 

[teflon142]

Check out Albourne Village. I've forgotten my username etc otherwise I'd have a snealy peak for you.

 

[NVP]

something based on mpt and rebalancing flows. it's all wip atm though. I'll PM you when I got my thoughts sorted out as I'm quite busy these days.

tnanks S ..that would indeed be interesting

N

 

[NVP]

I thought this was an idea whereby you'd be looking to capitalise on what hedge funds are doing rather than employing a hedge fund type strategy?

Dude like everyone else trying to make a passive buck without sitting in front of a screen 24/7 i'll take it anyway it comes !

just sick of my savings delivering <1% as they were depositied to ensure I would always have them returned vs the potential return they could give

Now I finally have some time to consider how I move those returns up the scale without necessarul any big drawdowns (if any)

sure thats the holy grail ........but you have to look

N

 

[NVP]

Ok lets make my aim clearer ......

I would be very very pleased if I could return 8-10% pa above base rate on my investments for the next 10 years........no drawdowns no fuss no scares and no drama ....

so whos doing that and how are they doing it ?....

N

 

[NVP]

thanks to everyone for the help and advice ......I'll start teawking

N

 

[NVP]

Those Tugboat guys seem to be all over the media at the moment, perhaps because they're retired old boys they're seen as more honest than Darren Winters and other get-rich-quick types. They come across as having their hearts in the right place, but still charging £25 a month though... From what i can see it's a simple momentum strategy that will work well in periods when momentum strategies work well, and at other times you'll get whipsawed to death I would guess.

The problem with adopting a hedge fund strategy is... which one? Relative value arbitrage? Beta neutral equity alpha? There are almost as many strategies as there are hedge funds (100,000 apparently...)

If you're doing something long term then personally I think you have to adopt a value approach, Ben Graham style strategy. If you really want to be hedge-fundy you could long them against a relevant index short. Somewhere between 10-15pc should be possible if you know what you're doing (before any leverage).

Bon chance!

just signed up for 2 months free membership ....will let everyone know whats inside the box

N

 

[NVP]

Trustnet.com is free and an interesting site

N

 

[NVP]

heres an interesting ETF tool...looks U.S based though........

Analysis Tools for ETF Investing

uk based info here

http://www.proactivesaver.com/html/etf_uk_list.htm