The Trade Alert Service of the Mad Hedge Fund Trader has posted a 30.64% profit year to date, taking it to another new all time high. The 27-month total return has punched through to an awesome 86%, compared to a miserable 10% return for the Dow average during the same period. That raises the average annualized return for the service to 38%, elevating it to the pinnacle of hedge fund ranks.
My bet that the stock markets would continue to grind up to new all time highs in the face of complete disbelief has paid off big time, as I continued to run sizeable long positions in the S&P 500 and the Russell 2000 (IWM). A hefty weighting in Ford Motors (F) has driven me to impressive profitability.
My substantial short volatility positions are contributing to profits daily, with the closely watched (VIX) Index plummeting to a new five year low at 11.5%. I booked nice profits from holdings in American International Group (AIG) and copper producer, Freeport McMoRan (FCX). I also prudently doubled up my short positions in the Japanese yen for the third time this year.
It has truly been a month where everything is working. Even my short positions in deep out-of-the-money calls on the (SPY) contributed to my P&L. While the (SPY) has been going up like clockwork, it has not appreciated fast enough to hurt the position.
Trade Alerts that I wrote up, but never sent, worked. That’s because I have been 100% invested for the entire year in long stock/short positions. However, followers of my biweekly strategy webinars caught my drift and benefited from the thinking, and many did these trades on their own. These included shorts in the Treasury bond market, (TLT), the Euro (FXE), (EUO), and the British pound (FXB).
Sometimes the best trades are the ones you don’t do. I have been able to dodge the bullets that have been killing off other hedge funds, including those in gold (GLD), oil (USO), and commodities (CORN), (CU).
All told, the last 20 consecutive recommendations of the Trade Alert Service have been profitable. I have six trades to go to beat this record. Watch this space.
Global Trading Dispatch, my highly innovative and successful trade-mentoring program, earned a net return for readers of 40.17% in 2011 and 14.87% in 2012. The service includes my Trade Alert Service, daily newsletter, real-time trading portfolio, an enormous trading idea database, and live biweekly strategy webinars. To subscribe, please go to my website at www.madhedgefundtrader.com, find the “Global Trading Dispatch” box on the right, and click on the lime green “SUBSCRIBE NOW” button.