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portefeuille (99.59)

how the zzporte collaboration started

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February 04, 2014 – Comments (31)



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31 Comments – Post Your Own

#1) On February 04, 2014 at 10:32 PM, awallejr (83.83) wrote:

Porte I will be blunt, since that is my nature heheh, unless your picks are based on real money it just doesn't matter to me.  

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#2) On February 04, 2014 at 10:40 PM, awallejr (83.83) wrote:

Just to follow up. I stopped listening to Cramer for that very reason.  The whole point of the "Volcker rule" is to force institutions to put some "skin" in the game.  It simply doesn't matter if Cramer's picks suck to HIM.  He doesn't have "skin" in the game aside from a charitable trust. Every pick I have suggested people to do over the years here reflects what I have done personally.

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#3) On February 04, 2014 at 11:04 PM, portefeuille (99.59) wrote:

#1,2 The zzporte portfolio currently has around $1.187M invested in real stocks and real options and around $0.043M in real cash.

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#4) On February 04, 2014 at 11:48 PM, ElCid16 (93.29) wrote:

Nice.

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#5) On February 05, 2014 at 8:29 AM, awallejr (83.83) wrote:

Then I stand corrected and say kudos.

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#6) On February 05, 2014 at 10:31 AM, YoungNGunnin2 (52.74) wrote:

Why didn't yall just make a joint twitter account? Anyway I'll be following you guys and offering my insight(not that you care).

 This is what this placce should be, a collabo of information where statisically the right answer makes an appearance over time. 

I believe there is truth in everything that is said.  So with that being said, something was said!  Cheers bredren lets make some motha hubbin money yes?! 

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#7) On February 05, 2014 at 12:22 PM, dragonLZ (99.55) wrote:

awallejr (80.95) wrote:

 

Porte I will be blunt, since that is my nature heheh, unless your picks are based on real money it just doesn't matter to me.  

 

 

Where have you been living...? 

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#8) On February 05, 2014 at 12:31 PM, dragonLZ (99.55) wrote:

I don't follow Porte and ZZ very closely, but have always thought that Porte is better at picking big biopharma winners than ZZ, even though I'm aware of the fact that ZZ is actually an expert in this space (or should I say, "was an expert even before Porte became one").

From Tony's e-mail above, I see that ZZ kind of thought so, too.

 

Good luck to both of you. To me, you guys are the epitome of CAPS investors with ball$, as well as a great example of a mastermind group.

I truly believe you will get very, very far as investors (and this is not based solely on the fact that biopharma is very hot right now).  

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#9) On February 05, 2014 at 12:49 PM, Mega (99.95) wrote:

awallejr wrote: The whole point of the "Volcker rule" is to force institutions to put some "skin" in the game.

I think you misunderstand the Volcker rule.

portefeuille

Looks like you and zz have a good partnership. I like his letter.

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#10) On February 05, 2014 at 1:00 PM, portefeuille (99.59) wrote:

#8 Thank you! I could also post emails in which I am close to quitting and whine about how little I know of medicine/biochemistry/.... I still occasionally whine about not having a secretary ;)

And we both agree that the secret of my success might have quite a bit to do with me not understanding all that much and thus not getting lost in details ;)

And we think that people should really wait and see how we do in a "prolonged down market", especially one for biopharma stocks, before declaring us investment genii :)

Moving from a little over $1M in AUM to around $1B would most certainly be fun. If we succeed we will of course throw a party and CAPS people from the good old times are invited :)

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#11) On February 05, 2014 at 1:26 PM, ikkyu2 (99.34) wrote:

I definitely find that my extensive knowledge of biotech and medicine is not helpful in predicting the next FDA approval or big small-cap biotech stock move.  I think it may actually be a hindrance, in fact.

I keep a pretty close eye on you, porte.  I like your style, always have. 

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#12) On February 05, 2014 at 1:29 PM, portefeuille (99.59) wrote:

#9 Thanks, I like that email, too. I found it pretty convincing :)

I must add that while the original plan was to put in about equal amounts of money we quickly changed our mind as that would have complicated things and my "capital base" is not quite as strong as his ;)

Thus I am simply employee #1 of 1 of zzporte, receiving quarterly remunerations ("tiered mid single digit profit share") :)

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#13) On February 05, 2014 at 2:21 PM, portefeuille (99.59) wrote:

#11 Thanks!



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#14) On February 05, 2014 at 2:25 PM, Valyooo (99.42) wrote:

What is it about bio tech as an asset class that you believe makes it a superior investment, at least in the current environment?

 

ps , congrats 

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#15) On February 05, 2014 at 2:57 PM, portefeuille (99.59) wrote:

#14 I think it performs quite similar to the technology sector in general. There have apparently been just two periods of "serious outperformance" of biotech stocks since the 90s, 2000/2001 and late 2011 until now.



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And my bet is on (bio)tech outperformance as "innovation creates value for the innovators". Or something like that. I think maybe I just like (bio)tech more than I do non-tech ;)

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#16) On February 05, 2014 at 2:59 PM, portefeuille (99.59) wrote:

than I do -> than

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#17) On February 05, 2014 at 5:04 PM, Option1307 (29.70) wrote:

Thanks for the update, always interesting what you two are up to!

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#18) On February 05, 2014 at 11:00 PM, awallejr (83.83) wrote:

I think you misunderstand the Volcker rule.

Sorry Mega but you do.  The whole point of the Volcker rule was to stop banks from engaging in proprietary trading off of other people's money.  The rule is designed to force such banks into risking thier own funds too.

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#19) On February 05, 2014 at 11:02 PM, awallejr (83.83) wrote:

Where have you been living...?

Kind of ignored comment #5 huh Dragon?

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#20) On February 05, 2014 at 11:18 PM, awallejr (83.83) wrote:

What is it about bio tech as an asset class that you believe makes it a superior investment, at least in the current environment?

They tend to march to the beat of a different drummer.  You pick right and it simply doesn't matter what the general market is doing.  The stock is all about the product.

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#21) On February 06, 2014 at 12:06 AM, HarryCarysGhost (99.68) wrote:

Porte, hope you don't mind but I was touting ZZ's and your performance on this blog-

http://caps.fool.com/Blogs/is-it-a-good-time-to-buy-gale/925090 

Keep up the good work, and let me know when I can buy partial shares into the hedge fund :) 

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#22) On February 06, 2014 at 1:11 AM, portefeuille (99.59) wrote:

#21 If either one of us were into doing paperwork or entertaining investors we might be able to start one in a few years, at least if our performance is good enough, but we are not, so we will most likely just keep it the way it is.

Thus for the time being people that want to invest will need to copy our trades. More work, but probably also more fun and you save the fees :)

See comment #10 above though, it might be too early to follow.

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#23) On February 06, 2014 at 1:31 AM, portefeuille (99.59) wrote:

#22 And if it is illegal to tell people to copy our trades then my new advice is to not copy our trades ;)

Maybe I should start consulting a lawyer now that I have around 1000 twitter followers :)

And I will probably have some trouble explaining to German tax authorities what exactly I am doing that justifies those quarterly payments from Miami to Düsseldorf, so I also need a tax adviser.

Maybe my case will set interesting precedents for German securities/tax/media legislation ;)

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#24) On February 06, 2014 at 11:14 AM, Mega (99.95) wrote:

awallejr wrote: The whole point of the Volcker rule was to stop banks from engaging in proprietary trading off of other people's money.  The rule is designed to force such banks into risking thier own funds too.

No, you have it backwards. The definition of prop trading is trading for the bank's own account. Unlike brokerage service, there are no clients involved. Unlike market making, the bets are more concentrated, longer term and directional.

http://en.wikipedia.org/wiki/Proprietary_trading

As a result of the Volcker Rule, US investment banks have closed or spun off their prop trading desks.

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#25) On February 06, 2014 at 11:30 AM, awallejr (83.83) wrote:

It is the use of depositor's money by the banks to trade with on their own account which is now prohibited. Further it is designed to have banks hold a piece of mortgages to encourage better dd instead of packaging and shipping loans off in full.

The rationale for this is to reduce risk. People invest differently when it is their own money than if it is someone else's. And again I point to Cramer.  It is easy for him to tout off hundreds of calls for others to make but if it was his own money put at stake you would hear a substantially different message. 

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#26) On February 06, 2014 at 1:46 PM, Momentum21 (93.26) wrote:

I am a fan...when there is an opening at the fund for a "remote secretary" for Porte I would love to apply. Something tells me he might need more than one...  : )

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#27) On February 06, 2014 at 2:45 PM, Mega (99.95) wrote:

awallejr wrote: It is the use of depositor's money by the banks to trade with on their own account which is now prohibited.

Not true. GS and MS are wholesale funded (no depositors), and the Volcker Rule also applies to them. The Volcker Rule bans prop trading at banks, it doesn't differentiate between depositor and equity capital at risk.

Further it is designed to have banks hold a piece of mortgages to encourage better dd instead of packaging and shipping loans off in full.

No, Dodd Frank has other rules related to securization, not Volcker.

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#28) On February 06, 2014 at 7:49 PM, awallejr (83.83) wrote:

Mega

The rule is often referred to as a ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank's own accounts, . . . .

The proposal specifically prohibits a bank or institution that owns a bank from engaging in proprietary trading that is not at the behest of its clients, and from owning or investing in a hedge fund or private equity fund, and also limits the liabilities that the largest banks can hold.

Under the law GS and MS are considered "bank holding companies" and they certainly hold money for clients.  In fact MS and GS actively sought the designation years ago only to try to lose the designation once they heard about Dodd-Frank.

http://caps.fool.com/Blogs/this-was-so-predictable/654892

I stand corrected technically on the mortgages, it is Dodd-Frank for that even tho, if I recall correctly, Volcker suggested it too.

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#29) On February 07, 2014 at 9:50 PM, anchak (99.85) wrote:

It gives a LOT of pleasure in the fact - that I think if I am not mistaken - I proved with data provided by porte - in late 2009 - or early 2010 when everyone - essentially was saying - he was just a Beta long 2009 timer ( he didnt time ) .....that in Biotech picks - his outperformance - was way far removed from Randomness - and I could even have mentioned - that that's what he should focus on.

The Porte virtual fund - started in early Summer 2010 - again he's not a timer..... 

ALL THE BEST! Good to see you guys doing so well

 

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#30) On February 10, 2014 at 12:04 AM, portefeuille (99.59) wrote:

Due to posting issues my reply to anchak's comment #29 above is here (and in a comment to this pitch ;)).

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#31) On February 11, 2014 at 1:34 PM, portefeuille (99.59) wrote:

The zzporte portfolio.



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