It’s that time of the year again, when the old year’s missteps and blunders are history (and only your investors’ problem at this point), and the New Year offers all the promise in the world for aspiring fund managers to show their skills and try beat the market. So put on your thinking caps this week and show us your favorite picks by next Monday morning.
This is the thread for the 2021 hedge fund contest. The official start of the contest will begin using Monday Jan 11th’s closing prices, so the hard cutoff for entries is 4pm ET when the market closes on Monday. I suggest trying to make up your mind by Monday morning and posting earlier so you don’t get busy during the day and forget. For reference, here is previous year's contest (2020) thread.
Here are the contest guidelines, same format as in previous years.
- Pick a fancy name for your hedge fund.
- Before 4:00pm EST on 11 Jan 2021, in this thread, pick up to three stocks to go long and up to three to short. Equal dollar amounts are placed on each position, long or short. Remember this is a stock picking contest, so ETFs and other funds are not allowed.
- Opening prices will be based on Jan 11th close.
- 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 any position. (Each position carries this option; you can choose to freeze different positions on different days.) Other than that, you're stuck with what you choose for the year.
- If a stock is taken out in a merger or a bankruptcy during 2021, we will do our best to do the right thing. An all cash offer will result in a freeze at the takeout price. An all stock offer will result in the conversion of the position to the acquiring company's shares. For mixed cash and stock offers or other more complicated events, you'll just have to trust me to saw things off fairly.
- The universe from which to choose is the Russell 3000. You should be able find all your stock choices in the list below (up to name changes or similar):
If you pick shares not on this list and it's not caught and corrected before the deadline, your portfolio or at least those ineligible choices will be disqualified. Dividends will not be counted.
Like last year, Tanelorn will be providing fixes and commentary as the year goes on. Once we get a spreadsheet prepared, you’ll be able to see that here:
Current Standings - 2021 hedge fund contest