Complete set of rules for 2012 ...
- Pick a fancy name for your hedge fund. Show some creativity. A panel of esteemed judges will choose the best.
- Before 9 am EST on 3 Jan 2012, pick two stocks to go long and two to short. You must choose four different positions. Equal dollar amounts are placed on each position.
- Common stock only. No bonds, no options, no funds.
- No trades during the year, except that you can elect at any time during normal exchange business hours to "freeze" a price for any individual position at that day's closing price, i.e. liquidate that one position. Other than that, you're stuck with what you choose for the year.
- The universe from which to choose is the Russell 3000. No exceptions. I will attempt to verify membership ahead of time and warn if offside, but the onus is on participants to verify each submitted portfolio against the link provided. Portfolios containing one or more offside positions at the start time will be excluded from the contest. Stocks that are eligible at the start but are removed from the Russell 3000 during 2012 will continue to be tracked.
- Starting prices are the 30 Dec 2011 close, ending prices will be the 31 Dec 2012 close. (Adjustments may be made to either in case of crazy spreads, at my sole discretion.)
- Positions merged out of existence during 2012 will either be liquidated at takeover price for cash deals or converted to positions in acquiring company for stock deals. As the universe has expanded for the 2012 edition, buyouts and mergers may be more common than in earlier years. Contest participants are encouraged to keep me informed of such corporate actions in their own funds, either with a PM or a post in this thread.
- 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 ...
- It's all automated to make it easy on myself.
to come up with my candidates for 2012. Be back to you before year-end.
, Long AAPL/CAT, Short, SHLD, ADI.
