Search found 1453 matches

by Tanelorn
Sat Jun 23, 2018 12:08 am
Forum: Investing - Help with Personal Investments
Topic: Foreign Taxes paid from Foreign Index fund in 401K
Replies: 5
Views: 453

Re: Foreign Taxes paid from Foreign Index fund in 401K

No, no tax credit or deduction. If it's your IRA, you could in theory file a foreign tax return to try to reclaim those lost withholdings, but in practice that's not going to be worth it but you could do it if you really wanted. Good luck getting your 401k custodian to do all that work themselves to...
by Tanelorn
Fri Jun 22, 2018 1:27 pm
Forum: Investing - Theory, News & General
Topic: Why Active can never beat Passive
Replies: 33
Views: 2995

Re: Why Active can never beat Passive

This argument is known as the Arithmetic of Active Management And it's false, or at least as it is widely and misleadingly applied to index funds. This has been discussed a few times in the past and someone even wrote an academic paper pointing out the flaws. Basically Sharpe's argument isn't very ...
by Tanelorn
Thu Jun 21, 2018 6:37 am
Forum: Investing - Help with Personal Investments
Topic: Hedging RSU's
Replies: 11
Views: 775

Re: Hedging RSU's

OP - You should ask yourself if you want downside protection and still have upside to further gains (in which case you want puts, but they will be very expensive), or if you are happy with today's price and just want to lock it in from further changes between now and when you vest and can sell (in w...
by Tanelorn
Wed Jun 20, 2018 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: Hedging RSU's
Replies: 11
Views: 775

Re: Hedging RSU's

Thanks folks- will check on whether the company allows hedges. Re: selling calls, from what I know - that doesn't protect you from large downside risk, correct? Correct, it doesn't. With a sold call, you get paid a modest premium for giving up the upside over the strike price (assuming the stock ex...
by Tanelorn
Wed Jun 20, 2018 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Hedging RSU's
Replies: 11
Views: 775

Re: Hedging RSU's

Short the number of shares as your RSUs, if your company allows. Writing calls, suggested above, does nothing to prevent large downside losses. If you don't want to or can't short the stock, you could short QQQ as a proxy. You could buy at or near the money puts to lock in the current price, but tha...
by Tanelorn
Mon Jun 18, 2018 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: Messy Divorce -- Forensic Accounting Help....
Replies: 120
Views: 9782

Re: Messy Divorce -- Forensic Accounting Help....

A checking account paying no interest would not generate a 1099.
by Tanelorn
Sat Jun 16, 2018 7:33 am
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

goblue100 's patience looks like it's beginning to be rewarded with his short pick of Wins Financial Holdings (WINS). Highlighted last year for their sudden and surprising price rise (up 25x at one point), as well as limited revenues and possible China-based irregularities, WINS stock has fallen ov...
by Tanelorn
Tue Jun 12, 2018 8:12 pm
Forum: Personal Consumer Issues
Topic: Bogleheads, tell me about your 40's?
Replies: 179
Views: 37020

Re: Bogleheads, tell me about your 40's?

So many good observations and suggestions. Good food for thought.
by Tanelorn
Sun Jun 10, 2018 10:44 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

Chanos is a structural short seller. He teaches some investing classes, and in his finals, he asks the class to go through quarterly statements, including balance sheet, income statement, and cash flow statements, and find fraud or very obvious obfuscations. And then he takes short positions based ...
by Tanelorn
Sun Jun 10, 2018 10:24 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

You can see the current status of this comparison on the "data" tab of the contest spreadsheet - look in the bottom right corner. Our group is long about half a stock pick on average, so benchmarked against the broad market (VTI, +2.3%) you would expect our collective portfolio to be up about 1.2%....
by Tanelorn
Sun Jun 10, 2018 7:20 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

Whatever happened to that market efficiency argument? It's as true as it ever was ;). Maybe most of our contestants just got lucky? Wow, Tanelorn, what a pick: - undiversified (onlye 1 pick), - short (harder to pick shorts, especially in a bull market), - currently, 95% up: not much 'upside' left i...
by Tanelorn
Sun Jun 10, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

you would think that the average fund in our group would be -2.5% since it is net long 0.5 (i.e. half) of a stock pick. Instead, our group is up +2%, showing we are outperforming our beta-adjusted benchmark by nearly 5%. Nice! You can see the current status of this comparison on the "data" tab of t...
by Tanelorn
Sun Jun 10, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

Congratulations to madpunster for his pick of Madrigal Pharmaceuticals. They recently reported very promising trial results for a common type of liver disease, which including marked average improvement, some complete cures, and no major side effects linked to the drug. MDGL shares have tripled, now...
by Tanelorn
Mon Jun 04, 2018 11:06 am
Forum: Investing - Theory, News & General
Topic: Dilemma: what if companies stopped going public?
Replies: 27
Views: 2752

Re: Dilemma: what if companies stopped going public?

Between the Sarbanes Oxley restrictions and other increasingly high costs of public company compliance, legal risks, etc, many of the better small companies are either not going public or trying to go private. On the other hand, private equity is awash in cheap capital looking to invest, and are hap...
by Tanelorn
Mon Jun 04, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: Do bond funds lose value while CDs do not?
Replies: 31
Views: 3363

Re: Do bond funds lose value while CDs do not?

CDs don't lose value, but that's just because they aren't marked to market. Instead, they have lost opportunity costs (and likely lost purchasing power too), so don't be deceived just because your balance only goes up. If you've got a 3% 5 year CD and a 3% 5 year treasury, they're basically the same...
by Tanelorn
Sat Jun 02, 2018 2:33 pm
Forum: Investing - Theory, News & General
Topic: Interesting New Article Taking A Fresh Look At Sharpe’s Arithmetic Of Active Management
Replies: 14
Views: 1102

Re: Interesting New Article Taking A Fresh Look At Sharpe’s Arithmetic Of Active Management

This has been discussed a few times in the past. Sharpe's argument isn't very realistic, although it points in the right direction of low turnover and long holding periods to minimize trading costs. https://www.bogleheads.org/forum/viewtopic.php?f=10&t=201300#p3085459 "In theory there is no differen...
by Tanelorn
Fri Jun 01, 2018 6:56 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

Tanelorn has further consolidated his lead as his single short pick, Ominto (OMNT), lost an additional 50% just today and was recently kicked off the stock exchange to the OTC "pink sheets" where disreputable stocks like this one belong. Tanelorn Capital investors are now up 85% for the year. Curre...
by Tanelorn
Fri Jun 01, 2018 6:36 pm
Forum: Personal Consumer Issues
Topic: Seeking Alpha pro membership, your thoughts
Replies: 15
Views: 1500

Re: Seeking Alpha pro membership, your thoughts

The current SA business model is to hide the author's articles after 10 days and charge you a monthly or annual fee to see the archives. I am not sure what they're charging now, but it was something like $100-200/year. If you find the articles useful, you can just read them now for free and save the...
by Tanelorn
Fri Jun 01, 2018 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for upcoming $3M windfall
Replies: 60
Views: 11422

Re: Strategy for upcoming $3M windfall

The tricky part is that I have a tenant on a fixed-term lease that expires 3/30/19, basically just before the 2/5 year deadline kicks in. I might just have to wait until then to sell. I'm sure it would be worth reviewing your lease terms and seeing if you could end that early. Saving several tens o...
by Tanelorn
Fri Jun 01, 2018 7:17 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for upcoming $3M windfall
Replies: 60
Views: 11422

Re: Strategy for upcoming $3M windfall

Thanks for the followup. Condo. I would prioritize selling the condo for tax reasons. You're up almost $150k and you'll lose $25-30k if that gets hit with taxes because you wait too long from when you lived there. Real estate sales can take some time, so start sooner rather than later. You don't hav...
by Tanelorn
Sat May 26, 2018 6:12 pm
Forum: Investing - Theory, News & General
Topic: Do TSM funds contain REITs, BDCs, CEFs, Prefered stocks?
Replies: 2
Views: 401

Re: Do TSM funds contain REITs, BDCs, CEFs, Prefered stocks?

BDCs used to be, but they were making the ERs look bad (due to how the high BDC management fees get passed through in the RIC reporting), so the index providers kicked them out a few years ago.
by Tanelorn
Sun May 20, 2018 10:51 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

Tanelorn jumped into 1st place this week with a spectacular decline in his single short pick, Ominto (OMNT). Tanelorn Capital investors are up about 65% currently. Agggm's tech heavy Luna fund continues to perform well, holding in a solid 2nd place for some time, and currently up 40%. Current Stand...
by Tanelorn
Wed May 16, 2018 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: Margin debt ratio
Replies: 39
Views: 2558

Re: Margin debt ratio

Thanks for clarifying your portfolio is mostly NVDA as I had assumed. I do realize the risk involved with the high leveraging of my portfolio. I'm going to be honest with you. You don't understand the risks. Margin is risky and best left to professionals and experienced traders. I am not an Anti-Mar...
by Tanelorn
Wed May 16, 2018 7:29 pm
Forum: Investing - Theory, News & General
Topic: Microcap Stock Screener
Replies: 21
Views: 1644

Re: Microcap Stock Screener

Sounds like a lot of work to me. What do you expect to gain over TSM or the microcap funds that already exist? Of course. Presumably he hopes to outperform, both TSM and existing microcap funds. Surely the latter can be done with enough effort - not only don't you have the 1-2% expense ratio of a f...
by Tanelorn
Tue May 15, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Margin debt ratio
Replies: 39
Views: 2558

Re: Margin debt ratio

tymishu wrote:
Tue May 15, 2018 8:28 am
I don't know how you know stock B is $NVDA. It is. Stock A is $AAPL.
Am I understanding you correctly that your portfolio is 95% AAPL / 5% NVDA, or is it the other way around?
by Tanelorn
Tue May 15, 2018 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone have experience with 'baby bonds'
Replies: 5
Views: 621

Re: Anyone have experience with 'baby bonds'

Verizon 35-40 year bonds are paying around 5-5.5%, so this only pays a modest premium to that. Unlike many of these longer term bonds, if rates fall, this baby bond can be redeemed by the company and reissued with a lower rate. If rates rise however, you will be stuck with this bond paying 5.9% and ...
by Tanelorn
Tue May 15, 2018 2:16 am
Forum: Investing - Help with Personal Investments
Topic: Margin debt ratio
Replies: 39
Views: 2558

Re: Margin debt ratio

Congratulations on your NVDA purchases, and especially on holding them this long. A couple of points: 1. IB margin requirements for concentrated positions, even in a PM account, is 30%(*) not 15% 2. Your margin rate is higher now, probably in the 2.00-2.25% range given the Fed hikes (floats with Fed...
by Tanelorn
Tue May 15, 2018 12:31 am
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

Meanwhile Sears has become a hot stock. Indeed. JCP is down 24% while Sears is up 7% - quite the turn of events. Sears recently announced the possibility of additional asset sales , and had been as high as nearly +20% YTD on the news. I question whether, even if successful, those funds will go to c...
by Tanelorn
Mon May 14, 2018 5:55 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

After languishing for the first four months of the contest, we at Tanelorn Capital are pleased to report our sole short position, Ominto (OMNT), is finally paying off. Their stock down over 50% today and now 64% for the year. We will refrain from speculating on exactly how badly off their financial ...
by Tanelorn
Sun May 06, 2018 10:14 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

Congratulations to MidwestMike , holding 1st place for some time now with over a 40% return on his XON pick. Agggm's Luna fund continues to perform well, currently in 2nd at 39%. Current Standings - 2018 hedge fund contest After the top two places, it's currently a bit of gap down to the next conten...
by Tanelorn
Wed May 02, 2018 12:08 pm
Forum: Personal Consumer Issues
Topic: Health insurance for a couple living in 10-12 cities in the US
Replies: 14
Views: 1331

Re: Health insurance for a couple living in 10-12 cities in the US

ACA policies are usually no good for this - typically it's emergency care only out of network, and the network is usually local to your home state (if not even more local than that). If you aren't entirely retired, perhaps your business or through your work you can try to purchase your insurance as ...
by Tanelorn
Tue May 01, 2018 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: Security Based Lending Rates
Replies: 5
Views: 477

Re: Security Based Lending Rates

Just use IB. The rates are better and the terms too.
by Tanelorn
Sat Apr 28, 2018 8:22 pm
Forum: Investing - Theory, News & General
Topic: What's wrong with this critique of indexing?
Replies: 124
Views: 8690

Re: What's wrong with this critique of indexing?

Another thing to consider when you're imagining that the EMH means all stocks should be equivalent if bought at today's price and before the good or bad luck of the future happens to them is this: what about diversifiable risk? Maybe buying Exxon, with extra risk to the price of oil, is only a fair ...
by Tanelorn
Mon Apr 16, 2018 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: Minimizing taxes for 2018
Replies: 12
Views: 1556

Re: Minimizing taxes for 2018

Bruce - you forgot the $2k cap per person on retirement savings eligible for the credit ($400 here at 10% credit rate). Otherwise looks good.

https://www.irs.gov/pub/irs-pdf/f8880.pdf
by Tanelorn
Sun Apr 15, 2018 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: New York State income tax bracket is not a marginal rate?
Replies: 30
Views: 2147

Re: New York State income tax bracket is not a marginal rate?

Thank you for sharing. I agree that as taxes become your largest expense item, it makes a lot of sense to try to learn as much as possible so you can plan in advance to avoid such cliffs, perhaps accelerate or delay some charity based on being close to some edge, etc.
by Tanelorn
Fri Apr 13, 2018 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Tarp warrants: any owners?
Replies: 6
Views: 518

Re: Tarp warrants: any owners?

If the warrant liquidity is poor and the common stock is better, it can make sense to exercise and then sell, rather than just to sell the warrant.
by Tanelorn
Fri Apr 13, 2018 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: Tarp warrants: any owners?
Replies: 6
Views: 518

Re: Tarp warrants: any owners?

I think my options are: 1) sell the warrants 2) exercise and hold the stocks for capital gain reasons till i’m In a lower tax bracket 3) exercise and sell the stocks. I think either 1 or 2 are reasonable, depending on your tax situation, gains on the warrants from purchase, etc. if you bought recen...
by Tanelorn
Fri Apr 13, 2018 6:11 am
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 2070

Re: Shorting the actively managed mutual fund market

You short the mutual fund, take the money and invest long in the underlying index. At that point you only care about relative performance, not absolute. Yes, that's right. Let's say you find a fund you dislike (perhaps due to their hefty 2% management fee), you could short it somehow and for free, ...
by Tanelorn
Fri Apr 13, 2018 6:04 am
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 2070

Re: Shorting the actively managed mutual fund market

It's not possible to short a mutual fund. You can short ETFs. But I suppose if any were really juicy short targets, they would be hard (expensive) to borrow. It's interesting that fund managers tolerate this given that short sellers are earning fees that would otherwise go to the manager (maybe the...
by Tanelorn
Thu Apr 12, 2018 12:16 pm
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 2070

Re: Shorting the actively managed mutual fund market

It's not possible to short a mutual fund. You could short the public stock of an active asset manager firm, but they're the ones collecting those high fees so it's not clear you want to do that and their stock is only loosely related to the performance of their funds and more to do with their market...
by Tanelorn
Thu Apr 12, 2018 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: When to sell individual stock following merger announcement?
Replies: 22
Views: 1342

Re: When to sell individual stock following merger announcement?

Given you have no tax issues, you could always sell half now and hold the rest for the cash price. Given you're up 100%, this would guarantee you wouldn't end up losing money even if the deal went catastrophically wrong. Generally speaking, the merger sepcialists will have priced that 3% spread rema...
by Tanelorn
Thu Apr 05, 2018 2:24 pm
Forum: Investing - Theory, News & General
Topic: New Tax Law- Out of State 529 Plans
Replies: 11
Views: 951

Re: New Tax Law- Out of State 529 Plans

Rollovers are subject to New York State tax on earnings A rollover of assets from your Direct Plan account to a 529 plan in another state is subject to New York State income tax on earnings, as well as the "recapture" of all previous New York State tax deductions made during the life of the account...
by Tanelorn
Thu Apr 05, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: New Tax Law- Out of State 529 Plans
Replies: 11
Views: 951

Re: New Tax Law- Out of State 529 Plans

The New York State Department of Taxation and Finance issued a Preliminary Report to the Governor on H.R.1, indicating that K-12 distributions may not be considered qualified distributions under New York statutes and may require recapture of any New York State tax benefits that accrued on contribut...
by Tanelorn
Thu Apr 05, 2018 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Used a Healthcare Broker--and I liked it!
Replies: 15
Views: 2231

Re: Used a Healthcare Broker--and I liked it!

OnTrack wrote:
Thu Apr 05, 2018 12:03 am
How does one get a group plan if not employed or a business owner?
You don't, or you start a business and deal with payroll, benefits, etc.
by Tanelorn
Wed Apr 04, 2018 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Used a Healthcare Broker--and I liked it!
Replies: 15
Views: 2231

Re: Used a Healthcare Broker--and I liked it!

I had a similar experience and elected to get coverage via a business rather than the healthcare exchange and found it worthwhile. The cost savings were not as dramatic as OPs, but the coverage was much better quality in many ways. I also expect the healthcare premium inflation will be lower due to ...
by Tanelorn
Sun Apr 01, 2018 6:32 pm
Forum: Investing - Theory, News & General
Topic: Barrons 'Interactive Brokers top Online Broker'
Replies: 31
Views: 2761

Re: Barrons 'Interactive Brokers top Online Broker'

With the cash collateral though is there real any credit risk? Of course. If your lent stock skyrockets during a single day, the counterparty may default on the stock loan and leave you only with 102% of the prior day's closing value. This may not be sufficient compensation for the rise of the stoc...
by Tanelorn
Sun Apr 01, 2018 8:02 am
Forum: Investing - Theory, News & General
Topic: Barrons 'Interactive Brokers top Online Broker'
Replies: 31
Views: 2761

Re: Barrons 'Interactive Brokers top Online Broker'

I was reading about their securities lending program and was confused about the cash collateral. How does that work? If I lend out 100 shares of xyz worth $10,000 do they deposit $10,000 in my account? If the stock drops by $2,000 then they only leave $8,000 on deposit? Who takes the credit risk? I...
by Tanelorn
Sun Apr 01, 2018 1:44 am
Forum: Investing - Theory, News & General
Topic: Barrons 'Interactive Brokers top Online Broker'
Replies: 31
Views: 2761

Re: Barrons 'Interactive Brokers top Online Broker'

Brokers offering free trades still get revenue from their execution partner.. TD gets about $2.5 per trade in order routing revenue. Although this additional order routing revenue makes it easier for brokers to offer free trade but it also create a conflict of interest and disincentive to find the ...
by Tanelorn
Sat Mar 31, 2018 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Printing out a ten thousand page form 8949 for the IRS?
Replies: 48
Views: 5180

Re: Printing out a ten thousand page form 8949 for the IRS?

Considering that brokerages now send copies of the trades to the IRS, the IRS should be able to very easily verify the totals. But you should always follow the instructions of the IRS over anonymous internet strangers. :D The instructions do have an exception for reporting every trade if you receiv...
by Tanelorn
Sat Mar 31, 2018 11:48 am
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 153
Views: 14433

Re: 2018 Hedge Fund contest

Well the first quarter is behind us, and many index investors will not be sad to see it go. High volatility returned after years of relatively calm markets, leaving broad stock indexes -2% for the YTD in terms of total return despite having been as high as +8% in January. Bond markets fared no bette...