Fund Program Kills It In September
By admin • Oct 3rd, 2008 • Category: Genoa, Mutual, News, Slovenia news trader, SorrentinoThe mutual fund program I’ve been talking about run by my good friend here in town slaughtered it in September - just exchanged some emails. He runs it at different leverage levels, 1x, 2.5x, and 5x. A group put 10 million in the 2.5x program - netted 28% last month. My account starts trading any day. Keep in mind he thinks a 25% drawdown is possible, and using leverage bites both ways. He also keeps saying not to expect this performance to continue. He’s been doing numbers like that since July, and has been having an amazing year since January. On his own account, which he trades far more leveraged with other intruments he was up an astounding 80% in September. Again he expects a 40% drawdown but to date has only seen 8%… granted he has been trading it like that for only three months. Up over 160% months however. Good times! If anybody’s interested let me know and we can work with you on it. Accounts can be as small as 15k in the 2.5x mutual funds. Fees are very reasonable, no commissions are charged. For the higher leverage we need 250k or so. He’s a great friend of mine and is always searching for managers just as we are. Congrats to him on finding one! Great to see the success. He’s had giant success in the past and has been through an extended slow period, happy to see it going well for him. I would think this is a good spot for mutual fund money instead of just sitting long the stock market. On the 1x program, annually look for around 15-20% with 10% drawdown (up 35% this year with 4% dd but this is exceptional). Also he hasn’t seen that drawdown live nor in the backtests, just says to expect it. For skeptics I’m sure statements can be produced.
Other news of note, Genoa up on the month, still not much trading, volume is very light ever since the Lehman collapse I’m told, and he likes momentum with volume. Distinctive system, I’ve watched some of his trades, interesting. Still have high hopes for him.
Also spoke with my friend out of New York yesterday for a while - he has gotten his program back up and running, and is much more scalable this time around. Last time he ran it he was making money nearly every day, was very fun. Returns have been slower this year, up aruond 12%, but no down months. Excited to allocate to him as well.
Seems like we’ve walked into a bunch of stellar programs lately. Of course there wil be an attrition rate as there always is, but we have some that have been running and making us money for a while now, HVB for example going on twelve months. Seems we are on an high right now, were on a low not that long ago.
Also starting a news trader that’s run 100k into 1.5 million since the beginning of the year. If anybody has a currenex account at a major institutions such as Newedge, JP Morgan, etc let me know and he’ll trade for you at 50/50. Has some volatility of course, but not bad in my opinion from what I’ve seen. Numbers were verified by a good friend who was his broker and introduced us.
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For which of the different leverage levels does the mutual fund program trader expect 40% drawdown?
On the 4x-5x - I’m not sure it’s an exact figure, he just has it levered a bunch on his own capital. He doesn’t have any clients trading it like he does, though he would consider it. He is very conservative when estimating drawdowns, making sure his clients are ready for the very worst should it come to pass. If you talk to him he’d halfway talk you out of investing with him.
i know of this “mutual fund program”. This is a solid program. It has done well under “normal” market conditions (around 20% annually) and also is taking advantage of this unusual volatility. As Tom stated i think the timing after this large equity runup may be tricky.
Tom, thanks again for passing along great information