I think this is the move that allows Rob to focus more on the investments that we have been promised. Rob, in my view, has perhaps too long an investment horizon. Short term there have been some very obvious trades such as energy and short anything tech with debt + no earnings or any company involved in consumer debt with no security(think ZIP). Shorts do seem to be outperforming the S&P500 index slightly so perhaps they got it right. As to the next obvious trades, I would pick environmental energy, water and global digital security and perhaps cloud (Amazon). None of these things will slow down, not even in a recession.
This week, the fund has again outperformed the index for the known longs and also presumably the shorts if they track the index.NOTE:There was quite a bit of index and after-hours SP movement from 5 pm last Friday to the opening price that my calculator uses so the calculated change could be +/- 1%. Again short and unknown longs are calculated using an index and could be wildly wrong - this is not investment advice.
@cutty, if we consider we have outperformed the index by more than 300% this week, we could actually call this downside protection. I still strongly feel businesses that continue to have demand, pricing power and stable earnings will overcompensate for inflation and thus have greater earnings and should in theory demand a higher share price. In debted companies will fail.
VG1 Price at posting:
$1.44 Sentiment: None Disclosure: Held
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