Anchak, the early believer :)
Comment posting troubles have returned to CAPS apparently. Maybe this post will make it.
It is actually not more than a reply to comment #29 here by anchak.
Thanks! I found you mentioning your belief in my biopharma stock picking talent in one of your statistics pieces (emphasis mine) :)
Is a CAPS based Fund plausible? Attempt at Quant based strategy
January 10, 2010
Anyway , although the illiterate fool that I am , sometimes I manage to read up some things called “papers” – especially if they come from a certain , “school” in Chicago. So Joseph Piotroski wrote this paper on Value investing – which really appealed to me in concept – so I pitched in early 2009 – all Piotroski High Scoring picks – with a CAPS score of 3+ for Stinkyfeet. The results have been much better – although some have been negative from a CAPS perspective – you made money on all of them – some were big winners ( TCK on my own call list is one – I would have liked to pick it right at the bottom on 3/3/09 – except I had the pick from Dec 08 – so I wanted to bank accuracy!) This is however from a perspective where 80-85% of stocks have gone up since – that means on a Mean Adjusted basis – you need to have at least 92+% accuracy to be considered a Non-Random event ( err ….a small little piece of statistical jargon – somehow which found a way into my ears – called test of sample proportions. Hans ie porte beats this actually on his Biotech calls – hands down! )