The 2009 FWF hedge fund contest

Discuss your favourite picks, broker, and trading or investment style.
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Norbert Schlenker
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The 2009 FWF hedge fund contest

Post by Norbert Schlenker »

Happy New Year!

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.
Last edited by Norbert Schlenker on 01 Jan 2009 09:33, edited 1 time in total.
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Re: The 2009 FWF hedge fund contest

Post by randomwalker »

Norbert Schlenker wrote:[*]Stock only. No bonds, no options, no funds....
Long and short Bond ETFs ok? ie XBB or TBT (NYSE)
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The Guaranteed Anxiety Fund (tm)

Post by pitz »

Long: Suncor Energy (SU), PotashCorp (POT)
Short: Shoppers Drug Mart (SC), Tim Hortons (THI)
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Post by travesty »

Should we assume equal $ weight at purchase between the two long and two shorts?

In any case, here are my picks (assuming ETFs are allowed - rw's question):

Long: HOU, HFU
Short: HOD, HFD
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Norbert Schlenker
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Post by Norbert Schlenker »

I'm ruling out travesty's portfolio and randomwalker's suggestion of candidates. I said "no bonds", so randomwalker's picks are both out. I said "no funds", which includes "no exchange traded funds" to my mind. I also said "no options", which bars any security that relies on options to magnify moves. (All of travesty's picks are double-move ETFs, as is randomwalker's TBT.)

This may seem arbitrary but I'm trying to ensure as level a playing field as possible. I'll make one change to the rules, allowing a choice of up to two longs and two shorts. That allows a contestant with no wonderful long or short idea to leave one side entirely in cash (at 0% interest), or a contestant with only one wonderful idea to simply double up by picking the same security twice.
Should we assume equal $ weight at purchase between the two long and two shorts?
Yes, unless you pick one security twice, in which case it will get double weight. I suppose a simple way to think of it would be that you will be shorting $100 (let's think big since you're all hedge fund managers) $100 million worth of two different stocks (or $200m of one) and using the proceeds to buy $100 million worth of two others (or $200m of one other). I'll make that explicit in the rules too.
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Re: The 2009 FWF hedge fund contest

Post by George$ »

Norbert Schlenker wrote:Happy New Year!

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.
Likewise a very Happy New Year to all you west coasters Norbert.

Alas, curious george here is wondering if the main purpose of this hedge fund contest is 'educational' , or 'entertainment', or 'make work', or what :roll:
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Post by randomwalker »

Khufu Asset Management

two long positions from the S&P/TSX Composite
FFH Fairfax Financial Holdings
ABX BARRICK GOLD CORP

no short positions
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Post by brad911 »

Fund Name: Double Tightloose Updown Hedgie Madoffwitheverything Fund

Long: NAL.UN & SU
Short: FSY & BMO (risky)
Triage Investing Blog - A Source for Value & Dividend Investing and Business Fundamentals
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Post by scomac »

The Half-Baked, Long/Short, Hedge Fund:

Long: L, TRI

Short: ENB, POT
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Post by beluga »

Name: No redemption for you!
Short: Goldman Sachs
Long: Microsoft
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Post by George$ »

Name: What the Hell Fun Fund (WHFF on the Norbert Exchange)

Two long positions, no shorts

MSFT - Microsoft
FFH- Faifax Financial Holdings
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Post by adrian2 »

The LOBASS (Long Banks Short Sprott) Fund

Long:
C = Citigroup
BAC = Bank of America

Short (from top holdings of Sprott Small Cap Equity):
TIM = Timminco
BNK = Bankers Petroleum

If the long NYSE + short TSX is not palatable, replace the long positions with:
BMO = Bank of Montreal
CM = CIBC
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Post by Serdic »

Name: Once Uponzi Time Fund

Long: Ford, COSTco
Short: GOOGle, TD
End Transmission.
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Post by uhoh »

Serdic wrote:Name: Once Uponzi Time Fund
:lol:
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Post by uhoh »

Long:
1. IMO
2. BNS

Short:
1. IMG
2. COF
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Post by OptsyEagle »

1st Crystal Ball Hedge Fund:

Long:

Bank of America: BAC
American Capital Strategies: ACAS

Short:

Quebecor: QBR.b
Family Dollar Stores: FDO
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Post by couponstrip »

You have a choice of two universes, either (a) the S&P/TSX Composite or (b) the S&P 500. No mix and match.
This excludes the TSX venture exchange I assume.....
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Post by pitz »

OptsyEagle wrote:1st Crystal Ball Hedge Fund:

Long:

Bank of America: BAC
American Capital Strategies: ACAS

Short:

Quebecor: QBR.b
Family Dollar Stores: FDO
Since when are all of the above exclusively listed on the S&P500 or the S&P/TSX Composite? :)
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Post by Gus »

Leylandii Hedge Fund

Long

LUN Lundin Mining Corp
BLD Ballard Power Systems Inc.

Short

ACE ACE Aviation Holdings
Money ain't got no owners, just spenders. Omar Little
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augustabound
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Post by augustabound »

Opulent Financial

Long

Norbord NBD-TSX.......gulp
Saputo SAP-TSX

Short

Coventree COF-TSX
Royal Gold RGL-TSX
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Post by OptsyEagle »

Since when are all of the above exclusively listed on the S&P500 or the S&P/TSX Composite?
Did I get this wrong. Does one need to pick all from the S&P500 OR the TSX300 as opposed to picking from all the stocks in either of those two indeces.

If I did it wrong, go ahead and substitute my short on Quebecor for a short on Gannett (GCI).
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Post by sayhey »

Name. Pharyngula.

Long day4energy dfe-t and Canadian Hydro khd-t

no shorts
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Post by augustabound »

OptsyEagle wrote:Does one need to pick all from the S&P500 OR the TSX300 as opposed to picking from all the stocks in either of those two indeces.
Yes.
You have a choice of two universes, either (a) the S&P/TSX Composite or (b) the S&P 500. No mix and match.
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Post by arnyk »

Name: The "We Put the 'Fun' in 'Hedge Fund'" Hedge Fund

Description: Whether we're up, or down, long or short, solvent or insolvent, as long as you have Fun™, we've done our jobs!

Long: AWI-T, ORV-T

Short: IPL.UN-T

And after a hectic fall term at school, I'm gonna try and be a wee more active on the forums again. ;)
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Post by Pickles »

Fund Name: Pickle Barrel

Long: POT and NT (don't laugh)
Short: SC and SLF (don't cry)
Regards,
Pickles
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