Miami LinkFest

Nice update to the Dorsey Wright Paper: Bringing Real World Testing to Relative Strength. Here is their monthly newsletter that takes a look at relative strength as another alternative to market cap weighting.


I spend a lot of time thinking about what to do with my content.  Wonderful post by James Altucher on his writing experiences as well as a new project by Seth Godin – The Domino Project.


A portfolio manager doing genetics research (and in this case I’m not referring to my bio background!).


Social media scorecard


One of the original reasons I started blogging had to do with frustration that the UK,Canada, Amsterdam, Swithzerland etc all were about a decade ahead of the US in listing hedge funds.  They had funds managed by Third Point, K2, Harris, etc and the US was falling far behind.  We tried to launch an ETN on the foreign listed hedge funds in ’08 but Lehman imploded that structure for awhile and you can’t invest in those funds otherwise due to the PFIC tax treatment (which is a shame since you can often buy them at solid discounts to NAV).

It’s great to see more and more hedge-like mutual funds and ETFs coming to market.  Lots of alternative beta indexes coming out of the big shops as well.

Barclay’s has a turn-of-the-month Index (TOM – trademarked I’m not joking) that shorts 10 days prior to month end the covers and goes long 3 days prior through 3 days after.  I know Peter Eliades used to run a fund based on the concept and the numbers (backtested) are impressive.

It looks like there is a UK based product trading for about a year and a half.

Another interesting index is the Dow Jones Contrarian Opportunities Index that screens for stocks with the worst three year trailing total returns.  Lots and lots of great innovation out there and it feels like we’re only in the first inning…