Tuesday, June 2, 2009

Elmer Fudd

. Tuesday, June 2, 2009

My million dollar paper trading account-affectionately known as "The Elmer Fudd Hedge Fund" has been doing quite well. I haven't written about it here much as I wanted to concentrate on REAL futures trading . But it is fun to write down strange and unusual ideas. I had a a gold/silver ratio spread that did real well but the most obscure is the following...

Awhile back I had read that HRP was a standout in the REIT world in that they were very well managed and didn't make the billion dollar mistakes the others did. Now you don't have to be a genius to know the CRE sector is in the dumpster, so as a good paper trader would do, I pretended I had an analyst to confirm that HRP was indeed a front runner in that sector. I then bought 20K of HRP and simultaneously shorted 20K of VNQ (a REIT ETF). It worked like a dream! A fundamental idea and using my techs---fun stuff!!