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Live Chat This Thursday: Meet the TigerPack Fund Management Team

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March 22, 2010 – Comments (27)

Join me on Thursday, March 25 from 6-7 pm EST for a Live Chat with the TigerPackFund management team.  The TigerPackFund includes some of the top investing minds in CAPS:  TigerPack, Anticitrade, Bullishbabo, JakilaTheHun, Portefeuille, and UltraLong.  Recently, they’ve opened up a Wall Street Survivor portfolio to see if their CAPS skills can translate into successful portfolio management.  Join me as I interview the team on their portfolio strategy, and jump in with your questions for the TigerPack fund team!

Mark Thursday from 6-7 p.m. EST on your calendar and/or set up an email reminder below.  And we'll see you in the live chat within my blog Thursday!




27 Comments – Post Your Own

#1) On March 22, 2010 at 5:17 PM, portefeuille (99.66) wrote:

tigerpack fund

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#2) On March 22, 2010 at 5:17 PM, whereaminow (26.39) wrote:

Best of luck to all involved.  They're all great stock pickers.  The results should be outstanding.

David in Qatar

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#3) On March 22, 2010 at 5:43 PM, Tastylunch (29.34) wrote:

mad respect for all involved.

I'll be really interested to see what weighting and number of holdings each player will use.

I already know what jakila and anticitrade are likely to do, but I admit I'm surprised by what Portefeuille has chosen to do in terms of position sizing.

i'll do my best to try to be there to watch.

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#4) On March 22, 2010 at 6:19 PM, kdakota630 (29.72) wrote:

That's actually a pretty impressive line-up.

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#5) On March 22, 2010 at 6:29 PM, portefeuille (99.66) wrote:

but I admit I'm surprised by what Portefeuille has chosen to do in terms of position sizing.

A recent update of my positions for the tigerpack fund is in comment #11 here.

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#6) On March 22, 2010 at 6:33 PM, TigerPack1 (97.46) wrote:

I have picked 5 others from the Motley Fool CAPS group player experiment TigerPackFund, to engage in a more real world project on WallStreetSurvivor.com.

The six of us have divided a WSS account between us, with some modest rules for trading, and we each are putting our best diversified picks into a "hedge fund" practice environment.

Our goal is to create steady outperformance of the stock market averages, after commissions, in both bull and bear market periods, using leverage (borrowing on margin) and short selling for hedges.  The diversification of market views and experience from six smart perspectives is the main project test.

Heavy diversification with 150-200 stock positions at a time, and aggressive short selling to reduce stock market exposure to well under 100%, should introduce much lower than "average" risk for the portfolio overall (than one can get through a typical "mutual fund" investment for example), without giving away potential upside gains, no matter the current market conditions or trend, are the lofty secondary goals.

Based on the performance of the TigerPackFund CAPS creation the last 9 months, I am targeting annual outperformance of 15%-20% annually.  Given a normal 10% up year for the stock "averages," my goal for this project is 25%-30% for gains, before commissions!!!  However, using a lower than normal stock market exposure around 50% net long, well under the 100% setting of a fully-invested stock index exposure or the typical net mutual fund position of 90%-100%.

If we can accomplish such a return based on these assumptions, we would be creating an insanely high RISK-ADJUSTED return.  "If" we can generate 2-3 times the average total return of the market, while basically taking 1/2 the risk in a heavily diversified approach, I suspect we will further investigate the opportunity of opening an actual real-world hedge fund product, using this team design.

While the design seems simple, intelligent and straight-forward, the successful implementation will not necessarily be so easy.  Margin (interest) costs and commissions will be a drag on performance, and the stock pickers will need to stay keenly focused near the top of their games.

Without doubt, a number of other CAPS players and TigerPackFund participants have truly terrific stock market minds and were considered for this experiment.  I wish I could have included more of them.  The team assembled is top notch, and will give us a great chance at success.  We will see how it goes.

-TigerPack

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#7) On March 22, 2010 at 6:43 PM, portefeuille (99.66) wrote:

#5 update.


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#8) On March 22, 2010 at 6:57 PM, portefeuille (99.66) wrote:

My positions are not at all representative of the rest of the fund. Most of the small capitalisation biopharmaceutical positions should be viewed as part of a group, like a bio-sub-fund, hehe ...

I currently don't have any "short positions" and will probably not add any unless it is part of an "arbitrage position" (like "long EMC / short VMW").

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#9) On March 22, 2010 at 7:07 PM, portefeuille (99.66) wrote:

Each one of us started with 1/6 of $100000 and most positions are marginable so I hold long positions with a value of close to $10000/3 plus "realised and unrealised net profit". The positions shown in comment #7 above currently have a value of around $34619.36 (using closing prices on 03/23/10). "realised and unrealised net profit" is currently around -$400 (after commission of $10 per trade), so I guess I will have to sell something on Monday, hehe ...

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#10) On March 22, 2010 at 7:08 PM, portefeuille (99.66) wrote:

oh well, excluding commission I am around $700 in the green ...

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#11) On March 22, 2010 at 7:10 PM, portefeuille (99.66) wrote:

I think I am done with my part of the chat. Always a good idea to answer questions that you pose to yourself ...

I am around 35 and German.

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#12) On March 22, 2010 at 7:13 PM, portefeuille (99.66) wrote:

$10000/3

$100000/3

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#13) On March 22, 2010 at 7:30 PM, Option1307 (29.93) wrote:

Best of luck!

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#14) On March 22, 2010 at 7:42 PM, portefeuille (99.66) wrote:

We are considering changing the "tracking platform" by the way as the wallstreetsurvivor.com platform only allows "trading" of securities on U.S. exchanges and makes our performance look not all that great due to the $10 per trade commission and $100000 starting capital parameters ...

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#15) On March 22, 2010 at 7:49 PM, portefeuille (99.66) wrote:

Our performance on our current portfolio tracking platform can be seen here ("Permanent" tab). We have made 210 trades so far, so pre commission we are currently around 0.4% in the green.

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#16) On March 22, 2010 at 8:38 PM, TigerPackFund (< 20) wrote:

Portefeuille- You need to hold back some, so we have ideas to post in the chat Thursday... LOL

Here is a link to the group CAPS player TigerPackFund:  http://caps.fool.com/player/tigerpackfund.aspx

Thought I should post this link for newbies wanting to do more research.

We have about 15 regular contributors that put up to 5 of their best stock ideas into the group selection at a time.  I have been impressed by the +10% average pick "outperformance" score so far versus the S&P 500.

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#17) On March 22, 2010 at 8:52 PM, soycapital (< 20) wrote:

I think I am done with my part of the chat. Always a good idea to answer questions that you pose to yourself ...

I am around 35 and German.

You seem quite capable of carrying on an interesting and non stop conversation with yourself. Enjoy!!

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#18) On March 22, 2010 at 10:22 PM, TMFJake (44.76) wrote:

Portefeuille is just getting the introductory questions out of the way so that I can laser in on the secrets of his investing strategy.  ;)

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#19) On March 23, 2010 at 1:06 AM, TMFUltraLong (99.95) wrote:

A big calculus & statistics book describes his strategy well...perhaps that and a dartboard of biotechs. I think he's nuts but I can't discredit his results. =)

UltraLong

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#20) On March 23, 2010 at 1:12 AM, JakilaTheHun (99.94) wrote:

For the record, I won't be participating in the chat. 

I actually have a flight leaving at 9 PM on Thursday.  Would probably be a bit hectic to try to participate in the chat while trying to pack up and get ready to leave for the airport.  

Maybe some other time :)

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#21) On March 23, 2010 at 1:18 AM, SUPERMANSTOCKS (58.50) wrote:

 portefeuille,

Why LXRX? Just curious why you bought it??

Superman

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#22) On March 23, 2010 at 9:14 AM, portefeuille (99.66) wrote:

on Monday

on Tuesday

LXRX currently has a market capitalisation of around $462 million (337404194 shares outstanding (175633988 as of 03/31/10 (see here) and 161770206 recently issued (see here))). Net proceeds from that recent raising of capital were approximately $181.4 million, so they will probably not need to raise more cash in the next few quarters.

their drug pipeline.

I think they have a decent chance of getting at least one of those drugs approved and the share price chart will likely have quite a few spikes when they announce "positive" preliminary results. I will probably "sell" part of the current position if I get a chance to do so at around $2 (and try to buy it back cheaper, hehe ...).

In 2000 they had around 41 million shares outstanding (see here).



enlarge

 



enlarge

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#23) On March 23, 2010 at 9:27 AM, portefeuille (99.66) wrote:

----------------

Sequenom shares rise

Sequenom shares climb on upgrade from Lazard analyst citing potential of Down syndrome test

"We anticipate Sequenom finishing development of a Down (syndrome) test this year, running external trials in 2011, and launching a test in late 2011 or in 2012," he said, in a note to investors.

He expects the company to use genetic sequencing in the test, which "multiple" researchers have shown can accurately predict the condition if fetal DNA is obtained.

"Sequenom has proven it can obtain fetal DNA, and we believe it is highly likely with fetal DNA in hand, that Sequenom can use sequencing to predict Down syndrome," Lavin said.

He said the company has risks, but its target markets are "too immense" and a successful test is too likely. In the U.S., the company could target a market worth more than $4 billion.

With all that said, he added, an investment in the stock is "speculative and risky."

"Sequenom may never develop or commercialize a Down syndrome test or the data may not be better than current screens," he said.

Also, the company needs additional funding that may not be available. There are also ongoing investigations by federal agencies and there is a "sizable" risk around commercialization and reimbursement for the company's products.

----------------

"speculative and risky". I like that as a motto for my biopharmaceutical positions. I think as a group it will do great and not be all that risky ...

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#24) On March 23, 2010 at 1:56 PM, djemonk (< 20) wrote:

You guys rock.  Best of luck to you!

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#25) On March 24, 2010 at 12:48 PM, TigerPack1 (97.46) wrote:

UltraLong put out a good blog post yesterday about the state of the market overall right now...

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=358320&t=01002756778892789413

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#26) On March 24, 2010 at 7:47 PM, portefeuille (99.66) wrote:

update of my positions in comment #13 here.

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#27) On March 25, 2010 at 7:16 PM, BroadwayDan (97.64) wrote:

Thank you, Tiger Pack.  And best of luck with this venture. 

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