People seem understanding but a little down in the dumps because bubbalouie isn't going to repeat this contest in 2009. So I'll propose a variant where everybody gets to run their own hedge fund. Here are the rules.
- Pick a fancy name for your hedge fund. Show some creativity. A panel of esteemed judges* will choose the best. The importance of this will become clear shortly.
- Before 9 am EST on 2 Jan 2009, pick up to two stocks to go long and up to two to short. Equal dollar amounts in each position. (If you want only one position on one side at double the size, pick the same thing twice.)
- Stock only. No bonds, no options, no funds.
- No trades during the year. You're stuck with what you choose.
- You have a choice of two universes, either (a) the S&P/TSX Composite or (b) the S&P 500. No mix and match.
- Starting prices are the 31 Dec 2008 close, ending prices will be the 31 Dec 2009 close. (Adjustments may be made to either in case of crazy spreads, at my sole discretion.)
- Winner of the name contest deemed to purchase long positions at 1% discount and sell short positions at 1% premium!
- Dividends won't count because ...
- I plan to automate this to make it easy on myself.
* Wanna be a judge? Send me a PM. No contestants, naturally.