The Boglehead Hedge Fund Contest

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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Norbert Schlenker
Posts: 543
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Location: The Dry Side of the Wet Coast

The Boglehead Hedge Fund Contest

Post by Norbert Schlenker » Sat Jan 03, 2009 2:12 pm

Well, since it seems that Bogleheadedness is seriously out of fashion nowadays, we might as well just go whole hog. Over at FWF (the Canadian cousin to Bogleheads), one of our long time members had been running a "pick your best three stocks and live with them for a year" contest for a few years. This year, he decided he didn't want to do it again so I created a variant. It's too late to get in on that contest (and why would you want to do it with Canadian stocks?) but, as the infrastructure is now all built, I thought I'd offer another up here for those who are interested.

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 5 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 just one.)
  • Common stock only. No bonds, no options, no funds.
  • The universe to choose from is the S&P 500. No exceptions. If you're not sure, check here.
  • No trades during the year. You're stuck with what you choose. Call it buy and hold. Or stay the course. ;)
  • Starting prices are the 2 Jan 2009 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 have automated this to make it easy on myself.
You can see the results after one day of trading :!: for the FWF contest here. That table is updated and resorted automatically at 6 pm Eastern each weekday.

The results table for this contest at Bogleheads is here. It will be updated daily.

---------------------

* Wanna be a judge for best name? Send me a PM. No contestants, naturally.

[Edited to add pointer to S&P 500 list and Bogleheads result table.]
Last edited by Norbert Schlenker on Sat Jan 03, 2009 6:25 pm, edited 3 times in total.

Gregory
Posts: 1554
Joined: Tue Feb 20, 2007 2:26 pm

Post by Gregory » Sat Jan 03, 2009 2:31 pm

T.A.A. - B. H. B. Fund

It will be a fund operating under the guise of "tactical asset allocation" (adjusting AA based upon "personal and international macroeconomic conditions"). When the NAV drops by 50.00000001% the fund will liquidate.

Long: JNJ, CVX
Short: GM, F

Greg
Last edited by Gregory on Sat Jan 03, 2009 6:39 pm, edited 1 time in total.
Pecuniae imperare oportet, non servire. | Fortuna vitrea est; tum cum splendit frangitur. -Syrus

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dmcmahon
Posts: 2087
Joined: Fri Mar 21, 2008 10:29 pm

Post by dmcmahon » Sat Jan 03, 2009 4:35 pm

Nocturnal Aviation Strategic Global Navigator Fund

(We plan to strategically navigate our private jets to the Caribbean if the fund tanks!)

Long CRM and FCX
Short GS and WMT

ruud
Posts: 171
Joined: Sat Mar 03, 2007 1:28 pm
Location: san francisco bay area

Post by ruud » Sat Jan 03, 2009 4:54 pm

Bubble 2.0

long GOOG and AAPL
short MSFT and HPQ
"A good plan, violently executed now, is better than a perfect plan next week."

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danwalk
Posts: 390
Joined: Mon Apr 14, 2008 2:03 pm
Location: The West Coast

Post by danwalk » Sat Jan 03, 2009 5:17 pm

The High Tech Soapy No Traffic Fund

Long: Google (GOOG), Procter & Gamble (PG)
Short: General Motors (GM)

It's fun to get crazy when the money is only virtual.

Good luck, everybody!
Dan
Image | "Time is your friend; impulse is your enemy."—Jack Bogle

grumel
Posts: 1629
Joined: Fri Mar 30, 2007 1:38 am
Location: Germany

Post by grumel » Sat Jan 03, 2009 5:41 pm

This real hedgefund name is almost impossible to beat:

"High-Grade Structured Credit Strategies Enhanced Leverage Master Fund"

My Bonus discount wave tripple inverse leverage structured hedged global makro enhanced fee gold renewable energy sustainabilty ethnical growth deep value strategic hype fund,

decided after some sophisticated analysis to invest long in:

Ford and General Motors

short in Berkshire Hathaway and AT&T

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Topic Author
Norbert Schlenker
Posts: 543
Joined: Mon Feb 19, 2007 11:06 pm
Location: The Dry Side of the Wet Coast

Post by Norbert Schlenker » Sat Jan 03, 2009 5:50 pm

grumel, Berkshire Hathaway is not S&P 500.

SteveB3005
Posts: 1425
Joined: Mon Feb 19, 2007 9:29 pm

Post by SteveB3005 » Sat Jan 03, 2009 5:59 pm

Iona Krapp Fund

Short
TGT.....Target Corp
SHLD...Sears Holdings Corp

Long
NOC....Northrup Grumman
MDT....Medtronic Inc

Thanks Norbert, looks like fun.

grumel
Posts: 1629
Joined: Fri Mar 30, 2007 1:38 am
Location: Germany

Post by grumel » Sat Jan 03, 2009 6:01 pm

Sorry, new stocks:

Long Ford General Motors

Short Microsoft AT&T

gchan
Posts: 237
Joined: Thu Jan 03, 2008 9:00 pm

Post by gchan » Sat Jan 03, 2009 6:25 pm

The Masters of the Universe Fund

Long: THC (the stock, not the drug)

[EDIT: removing this: Short: ACAS]
Last edited by gchan on Sun Jan 04, 2009 9:23 pm, edited 3 times in total.

JohnDoe2004
Posts: 93
Joined: Mon Sep 08, 2008 11:52 pm

Post by JohnDoe2004 » Sat Jan 03, 2009 6:26 pm

Short Term Capital Mismanagement

Long:
GOOG, MHS

Short:
PG, RSH

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craigr
Posts: 2696
Joined: Tue Mar 13, 2007 6:54 pm

Post by craigr » Sat Jan 03, 2009 6:52 pm

Fund Name:

Dodge & Dux Fund (What our fund manager does when investors come knocking)

We're proud to announce for 2009 our "Beer and Bandaids" portfolio strategy:

Long:

TAP, JNJ

If I have to short then it's these:

MAR, JWN

Otherwise, no shorts.
IMPORTANT NOTE: My old website crawlingroad{dot}com is no longer available or run by me.

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gotherelate
Posts: 845
Joined: Wed May 28, 2008 6:57 pm
Location: Texas

Post by gotherelate » Sat Jan 03, 2009 7:11 pm

Fund Name: Where There's Smoke, There's the Paper It's Printed On


Long:
Wells Fargo
International Paper

Short:
Eli Lilly
Lorillard

-Grandpa
-Grandpa | I'd rather see where I'm going than see where I've been.

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RaleighStClaire
Posts: 733
Joined: Mon Jun 18, 2007 2:08 pm
Location: Tilting

Post by RaleighStClaire » Sat Jan 03, 2009 7:40 pm

Fund Name: Epic Failure

Long: AIG
Short: GM
Last edited by RaleighStClaire on Sat Jan 03, 2009 9:41 pm, edited 1 time in total.
Where's that red one gonna go?

matt
Posts: 2305
Joined: Sun Mar 04, 2007 3:47 pm

Post by matt » Sat Jan 03, 2009 8:03 pm

Name: Reverse Engineering Fund

Long: MBIA Inc. (MBI)
Short: General Motors (GM)

eurowizard
Posts: 1005
Joined: Sat May 10, 2008 10:26 am

Post by eurowizard » Sat Jan 03, 2009 8:10 pm

The Emotional Friend Fund

Long: PCL, DOW
Short: XOM, DUK

grok87
Posts: 8925
Joined: Tue Feb 27, 2007 9:00 pm

Consternatio Partners

Post by grok87 » Sat Jan 03, 2009 8:10 pm

Ok here goes:

Fund name: Consternatio Partners

Long: Iron Mountain (IRM) and Scana (SCG)

Short: Citigroup (C) and Genworth (GNW)

cheers,
RIP Mr. Bogle.

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SoonerSunDevil
Posts: 2000
Joined: Mon Feb 19, 2007 10:32 pm
Location: The desert

Post by SoonerSunDevil » Sat Jan 03, 2009 8:15 pm

Oklahoma Sooners Hedge Fund

Long:

Citigroup (C)


Short:

General Motors (GM)

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auntie
Posts: 288
Joined: Mon Dec 08, 2008 12:49 pm

Post by auntie » Sat Jan 03, 2009 9:36 pm

Auntie can guess better than anybody

Long:
WY Weyerhaeuser Corp.
CAT Caterpillar Inc.

Short:
SBUX Starbucks Corp.
DTV DIRECTV Group Inc.DTV

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jeffyscott
Posts: 8479
Joined: Tue Feb 27, 2007 9:12 am
Location: Wisconsin

Re: The Boglehead Hedge Fund Contest

Post by jeffyscott » Sat Jan 03, 2009 11:25 pm

Norbert Schlenker wrote:Common stock only. No bonds, no options, no funds.
:thumbsdown

How am I supposed to bet on bursting of the treaury bond bubble with that rule...Image

:)
Time is your friend; impulse is your enemy. - John C. Bogle

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iranutmeg
Posts: 57
Joined: Mon Feb 19, 2007 10:38 pm

Post by iranutmeg » Sat Jan 03, 2009 11:46 pm

Hedge Fund Name: Trust in Me, LLC
My Motto: You can trust me until I get caught!

Short
SHLD - Sears
MSFT - Microsoft

Long
GE – General Electric
GD – General Dynamics
Best Wishes to all, | | PJ

james22
Posts: 1513
Joined: Tue Aug 21, 2007 2:22 pm

Post by james22 » Sun Jan 04, 2009 12:51 am

PARASIGHT, LLC

Long: Chesapeake Energy (CHK)

Short: Pulte Homes, Inc. (PHM)

retired at 48
Posts: 1726
Joined: Tue Jan 15, 2008 7:09 pm
Location: Saratoga NY; Port Saint Lucie, FL

hedge contest

Post by retired at 48 » Sun Jan 04, 2009 2:40 am

PYRAMID UP MOVING AVERAGE VALUATION MOMENTUM HEDGE FUND


Long: THC .... Tenet Healthcare


Short: SPG.... Simon Property Group


retired at 48

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docneil88
Posts: 927
Joined: Mon Apr 30, 2007 3:39 pm
Location: Taxable

Pick and Pan

Post by docneil88 » Sun Jan 04, 2009 3:33 am

The Incite Fund

Long Nabors Industries (NBR)

Edit: No short position
Last edited by docneil88 on Sun Jan 04, 2009 7:30 pm, edited 1 time in total.

mj
Posts: 1
Joined: Sun Jan 04, 2009 4:22 am

Post by mj » Sun Jan 04, 2009 5:37 am

Commoditized Reverse Auction Preferred Private Equity Reserve Fund
"Throw Your Money Down the C.R.A.P.P.E.R."(SM)

Long: APOL, FCX

Short: KR, MO

n42
Posts: 147
Joined: Sat Dec 27, 2008 4:58 pm

Post by n42 » Sun Jan 04, 2009 9:28 am

Stab in the Dark

Long COP, IP
Short WY, GOOG
n42

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Ariel
Posts: 1361
Joined: Sat Mar 10, 2007 8:17 am

Post by Ariel » Sun Jan 04, 2009 10:17 am

The Capital Punishment Fund

Long: MTW
Short: EQ
Do what you will, the capital is at hazard ... - Justice Samuel Putnam (1830), as quoted by John Bogle (1994)

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scubadiver
Posts: 1150
Joined: Sun May 04, 2008 9:48 pm

Post by scubadiver » Sun Jan 04, 2009 10:36 am

Hedge fund name: The Two and Twenty Capital Investment Fund
Unlike our investors, we make money no matter which way the market goes.

Long: BHI (Baker Hughes), IR (Ingersoll-Rand Co. Ltd.)

Short: LXK (Lexmark Int'l Inc), BA (Boeing Company)

sar
Posts: 81
Joined: Wed May 28, 2008 4:21 am

Post by sar » Sun Jan 04, 2009 10:38 am

Name: Hangover Fund

Long:
EBAY
FIS

Short:
AXP
COH

robert2008
Posts: 20
Joined: Thu Oct 16, 2008 4:55 pm

Post by robert2008 » Sun Jan 04, 2009 11:01 am

Name: Monte Carlo Total Bull Capital Growth Fund

Long: ECL, TXT

Short: CTX, PNC

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Dan Kohn
Posts: 1505
Joined: Tue Jun 26, 2007 12:15 am
Location: New York, NY
Contact:

Madoff Was Framed

Post by Dan Kohn » Sun Jan 04, 2009 11:21 am

Madoff Was Framed Partners

Long: GOOG
Short: GM

Thanks!

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canucknyc
Posts: 248
Joined: Thu May 01, 2008 6:26 pm
Location: New York, NY

Post by canucknyc » Sun Jan 04, 2009 11:38 am

IKSUD Partners ("I know something U don't")

Long: MSFT
Short: YHOO, GOOG

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Topic Author
Norbert Schlenker
Posts: 543
Joined: Mon Feb 19, 2007 11:06 pm
Location: The Dry Side of the Wet Coast

Post by Norbert Schlenker » Sun Jan 04, 2009 2:14 pm

For anyone who's already in, please take a quick look at http://libra-investments.com/hf/bh.html to verify that I have your positions right.

Entries close 9 am EST tomorrow.

mark500
Posts: 392
Joined: Sat Oct 11, 2008 8:37 am

Post by mark500 » Sun Jan 04, 2009 2:22 pm

High Grade Structured Credit Strategies Enhanced Leverage Master Fund. Ltd.
This was the actual name of a defunct Bear Stearns fund.

gchan
Posts: 237
Joined: Thu Jan 03, 2008 9:00 pm

Post by gchan » Sun Jan 04, 2009 2:34 pm

Wait a second... we're allowed to choose only 1 stock? So does this mean that the long/short side is held in cash? Or does the entire portfolio go into that 1 stock?

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9Iron
Posts: 216
Joined: Fri Feb 23, 2007 6:41 pm
Location: South Florida

Post by 9Iron » Sun Jan 04, 2009 3:06 pm

Consolidated Hedged Enhanced Asset Trust (C.H.E.A.T)

Long: Celgene ( CELG ) and Gilead ( GILD)

Short: Macy's (M) and New York Times (NYT)

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woof755
Posts: 3167
Joined: Sun Aug 05, 2007 2:03 pm
Location: Honolulu

Post by woof755 » Sun Jan 04, 2009 3:07 pm

Fund name: Hedgehog Principle


Long: MO NE

Short: KR (a) MAR


Purpose: Doesn't matter what stocks I pick, b/c the market is pretty random and even if I could figure out what stocks would be wonderful and what stocks would be particularly crappy in 2009 I don't have the time to do so.

So, I'm mimicking anagrams.

I'm long on money, short on Jim Kramer. Sorry for the misspelling, Jim, but there's no stock named MER in the SP 500..
"By singing in harmony from the same page of the same investing hymnal, the Diehards drown out market noise." | | --Jason Zweig, quoted in The Bogleheads' Guide to Investing

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Christine_NM
Posts: 2721
Joined: Tue Feb 20, 2007 1:13 am
Location: New Mexico

Post by Christine_NM » Sun Jan 04, 2009 3:27 pm

Name: Flatiron Fund

Long: DE, WMT
Short: CAT, KR

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Topic Author
Norbert Schlenker
Posts: 543
Joined: Mon Feb 19, 2007 11:06 pm
Location: The Dry Side of the Wet Coast

Post by Norbert Schlenker » Sun Jan 04, 2009 7:09 pm

gchan wrote:Wait a second... we're allowed to choose only 1 stock? So does this mean that the long/short side is held in cash? Or does the entire portfolio go into that 1 stock?
Here's the method I'm using if people don't choose two long and two short.

If there is something on both the long and short side, half the weight is one side and half on the other. If only one side gets chosen, then all the weight falls on that side.

For each side, the weight is allocated equally among the number of securities on that side.

For example, if people choose two longs and one short, then 1/4 of the portfolio is in each of the two longs and 1/2 in the short.

Hemispheres
Posts: 577
Joined: Tue Sep 16, 2008 7:54 pm

Post by Hemispheres » Sun Jan 04, 2009 8:07 pm

Name: Pygmy Growth Fund (previously Tactical Asset Misallocation Fund)

Long: AIG, BAC

Short: FDO, SWN


Edit: replaced LIZ with AIG (LIZ was dropped from the SP500 recently)
Last edited by Hemispheres on Sun Jan 04, 2009 11:38 pm, edited 1 time in total.

n42
Posts: 147
Joined: Sat Dec 27, 2008 4:58 pm

Post by n42 » Sun Jan 04, 2009 8:50 pm

Norbert Schlenker - thanks for doing this - it could be fun. It is already fun to see which companies, as a whole - we are both long and short.

One thing I don't understand from those who are short GM -- There is not much room to run, even if it runs all the way to zero. How do you make money doing that?

note: some folks in this thread are long GM

Interesting!
Thanks
n42

gchan
Posts: 237
Joined: Thu Jan 03, 2008 9:00 pm

Post by gchan » Sun Jan 04, 2009 9:24 pm

In that case, could I please change my portfolio to the following:
The Masters of the Universe Fund

Long: THC

Gregory
Posts: 1554
Joined: Tue Feb 20, 2007 2:26 pm

Post by Gregory » Sun Jan 04, 2009 9:32 pm

Norm pls make sure I'm entered -- after all, I was the first one who responded. :D

Thanks.
Pecuniae imperare oportet, non servire. | Fortuna vitrea est; tum cum splendit frangitur. -Syrus

stan1
Posts: 8115
Joined: Mon Oct 08, 2007 4:35 pm

Post by stan1 » Sun Jan 04, 2009 9:45 pm

The Ponzi Scheme

Long:
AIG
GM

Short:
CCL
SPG

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SoonerSunDevil
Posts: 2000
Joined: Mon Feb 19, 2007 10:32 pm
Location: The desert

Post by SoonerSunDevil » Sun Jan 04, 2009 9:51 pm

n42 wrote:One thing I don't understand from those who are short GM -- There is not much room to run, even if it runs all the way to zero. How do you make money doing that?

note: some folks in this thread are long GM

Interesting!
Thanks
n42
It doesn't matter if GM is at $10 or $50 or $3. You're not concerned with the dollar decline with respect to the share price; you're concerned about the percentage gain or loss on GM stock.

exeunt
Posts: 907
Joined: Tue Jan 08, 2008 6:54 pm

Post by exeunt » Sun Jan 04, 2009 11:18 pm

Ultra-leveraged Alpha-plus Quantitative Enhanced Equity Arbitrage Fund

Long: UTX, ECL

Short: GPS, DOW

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Dan Kohn
Posts: 1505
Joined: Tue Jun 26, 2007 12:15 am
Location: New York, NY
Contact:

Re: Madoff Was Framed

Post by Dan Kohn » Sun Jan 04, 2009 11:19 pm

Dan Kohn wrote:Madoff Was Framed Partners

Long: GOOG
Short: GM
Sorry, Norm. Could you please remove the long position, so that I'm just short GM.

Madoff Was Framed Partners
Short: GM

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anthau
Posts: 146
Joined: Wed Feb 21, 2007 5:29 pm
Location: Laramie, WY

Post by anthau » Mon Jan 05, 2009 12:34 am

Sailor's Holiday

Long: Sears (SHLD)
Short: AIG (AIG)

Thanks. Should be fun.
Best, | | Anth

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celia
Posts: 10047
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Post by celia » Mon Jan 05, 2009 1:05 am

Fund Name: No Pain, No Gain

Long: GE, XRX (General Electric, Xerox)

Short: WPO, MCD (Washington Post, McDonalds)

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Sunny Sarkar
Posts: 2418
Joined: Fri Mar 02, 2007 1:02 am
Location: Flower Mound, TX
Contact:

Post by Sunny Sarkar » Mon Jan 05, 2009 8:24 am

High Yield Arbitrage Convertible Discretionary Macro 130-30 Directional Leverage Trust

Long:
Freeport-McMoran Cp & Gld
Schering-Plough

Short:
Ball Co
Xilinx

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