My Career on the Line

Throughout my hedge fund career I have been willing to make bold moves. More than 2yrs ago I setup the Sefirot Freestyle strategy to outperform the S&P500 on a risk adjusted basis.

We are basically 8yrs in on a smoking hot bull market that has to my mind reached dangerous levels of exuberance. I am not sure exactly the size of the rally since The Donald was elected in November but it is probably up 15% plus maybe 20% since then. The markets simply loving the promises that are being made to grow the economy.

My intention when setting up this strategy was not to short the market. Rather to step aside and let the market do what it must. This mandate served me well over the past year as I probably would have been my typical early self and been short way too early. I got lucky and missed the bulk of the rally but never got really badly hurt and it turns out I have still outperformed the S&P500 on a risk adjusted basis.


The problem is I have never been the type of guy who gets overly excited with strong relative performance at the end of the day the objective is to make money in absolute terms. When I look at the financial / economic landscape and see the euphoria in the market place, coming from reckless monetary policy and soon to be reckless fiscal stimulus all the while ignoring the shadow material (i.e. the indebtedness) then I feel it is incumbent to be bold and test my theory of the market complex with all its might.

Buying 200 SDOW an inverse Dow30 x3 ETF at the market open on the 2nd and getting on the opposite side of this runaway train heading for a crash.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s