Trade Alert: Hard Choices To Reduce The Number of Names
It’s Fried-day. What a week of earnings reports, market volatility, hard work and I even went to a ballet at Spencer Theatre in Alto, NM last night. Made me miss living in NYC where you can buy a ticket to the greatest ballet performances on a whim.
Long-time readers know that I strive to make the hard trades, to keep my ego in check, to not let emotions drive my trades. Great hedge fund managers need to be strictly disciplined and flexible — and concentrated. Bill Ackman, for example, only has about seven total positions in his biggest multi-billion dollar hedge fund. I’m not looking to copy his approach or anybody else’s, but I know that we need to focus our energy, our time and our capital to our highest conviction ideas and that requires selling our lowest conviction ideas, even if we just recently bought them.
