Σ1

Improve your financial health with these financial resolutions: Diversify with non-traditional and non-Wall Street investments.  For example real real estate. Lower your ETF (and mutual fund) expense ratios.  The ETF revolution is constantly competing for your money with an expense-ratio war.  For instance, consider VEA vs EFA. Consider employing a buy-write strategy, either on your [...]

If you’ve no heard of BitCoin (BTC, $BCOIN) you’re missing out on a long-shot currency bet opportunity.  The risk: value could plummet to zero.  The reward: If all goes perfectly you could buy a sizable piece of the next reserve currency.   Likely something in-between will happen.  Read more about BitCoin.

Currently all-long, mostly-equity positions: 50 shares EFA 100 shares SCHB 100 shares VEA 100 shares JNK 200 shares PBP 100 shares VTI 100 shares SPY NAV: 36,604.55 USD.

Yesterday I made several trades. I bought BWX and WIP to close my short positions, while maintaining long positions in EFA and VEA, effectively going shorter against the USD. Even though I have been emulate the CBOE S&P 500 BuyWrite Index (BXM) for somewhat less than PBP’s 0.75% expense ratio, I decided eat some crow [...]

Years ago, a successful friend of mine was telling me stories about his early Wall Street interviews with a big-name investing house.   One stood out to me.   The question: If you had to invest $1,000,000 for a client, and your had only two choices, which would you choose?   (A) “Invest” the whole $1,000,000 on red [...]

Since May 10th the Sigma1 Fund is down over 1000 dollars, closing today at $37,856.48.  I’ve been thinking about reducing the leverage of the fund from its current 1.57X to closer to 1.2X.  I have been weighing the cost of realizing some short-term capital gains versus a desire to deleverage. On a separate note I’ve [...]

I believe the US economy is finally, gradually, haltingly emerging from its drug-induced slumber. So, what is my opinion on US equities?   Neutral to mildly bullish. The fact of the matter is that US equities are leading economic indicators.  Unless you believe in momentum investing, which I don’t (see disclaimer), past market moments do not [...]

This morning I realized that the Sigma1 Proprietary Trading Fund was allocated slightly dollar-centric rather than dollar-neutral.  To bring it back to USD-neutral I bought some BWX shares to cover a portion of my short positions.  Today the NAV of Sigma1 closed at $39,035.

As of this evening, the total NAV of the Sigma1 Proprietary Trading Fund is: $38,672.43, up over 10 percent from the original investment of $35,000.  Currently the Fund has no options positions and only long and short equity and EFT positions plus cash. Note: Returns for outside investors would be lower after fees.  Currently the [...]