Author Topic: The 400% Man!  (Read 123158 times)

Shooter MacGavin

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Re: The 400% Man!
« Reply #300 on: April 24, 2018, 08:47:01 AM »

I take particular umbrage specifically with funds that are underperforming the market on an unlevered basis, risking investor's capital with high levels of margin (and I make a distinction between margin and leverage overall), throwing up good numbers and receiving the accolades from outside investors who aren't paying attention to this "parlor trick". And it happens ALL the time.

I'm curious what funds do this. I know you don't want to name names, but presumably this info is in their letters and out there.

I don't mean it to sound like the funds/ IM's are being deceptive or anything like that by using margin and they should be "called out".  I'm saying when we are trying to evaluate their performance, it's not strictly about how much the fund is up overall.  It's easy to forget this point.  The question of how much risk was taken is very important too.  Unfortunately, the latter isn't as easily discernible to the average investor. 

I don't really want to discuss names, because I don't have access to statements, total holdings,hedges and so forth and I haven't gone over these things with a fine-toothed comb so I could easily be wrong (nor do I have any interest in doing that), but it seems to me that some funds with large out-performances are generally only doing so because of sizeable margin.

It also doesn't mean that there's not funds with large outperformances who are using margin that are also highly skilled.


oddballstocks

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Re: The 400% Man!
« Reply #301 on: April 24, 2018, 09:18:41 AM »
I was on a series of emails when the accusations were flying.  Yes, numbers didn't seem to add up from what we could see.

NOW...he has ZERO responsibility to the public to show he isn't a fraud.  I know people wanted a public declaration and proof.

What I know from my emails is that he provided details and information to his investors to show them that he wasn't a fraud.  I believe this was details on each trade, plus information on accounts.  That's a proper response.

Hiding letters?  My guess is performance is down.  I get letters all the time, having a consistent flow of them is rare.  They are flooding in during good years, and suddenly top secret in bad years.

The manager who exposes their returns and thoughts both good and bad years has a lot of integrity.  I would trust them over someone who goes silent when things are bad, but is shouting from the rooftop when things are good.
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racemize

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Re: The 400% Man!
« Reply #302 on: April 24, 2018, 09:33:21 AM »
I believe the results were fine for 2017.  Not outperformance, but not bad either.

stahleyp

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Re: The 400% Man!
« Reply #303 on: April 24, 2018, 09:35:14 AM »
I said it before (but will again). If Allan will let me in, I'll be happy to take the place of an investor that wants out (if he'll let my poor self in under the minimum). ;)

As for Sanj, he's a solid investor and super reputable but Allan has insane returns. The fund was even up in 2008. Incredible.
Paul