My Hedge Fund: August 2007

August 30th, 2007

I’ve done alright for My Hedge Fund after its first month, considering I started it during this really bad market turmoil.

My holdings:

• 2,000 - [TSX: SLW]
• 14 - 2010/01/16 call on YAHOO! INC at $20.00
• 1 - 2010/01/16 call on GARMIN LTD at $40.00
• 2 - 2010/01/16 call on WHOLE FOODS MARKET INC at $20.00
• 20 - 2008/02/16 call on NORTHERN DYNASTY MINERAL at $7.50

I began this month with a portfolio value of $100,000 CND and $100,000 USD. The current value of this portfolio is $97,485.34 USD and $99,480.01 CND for a total of $196,965.35, a 1.52% loss. I don’t think its as bad as it sound, all things considered.

Excuses & Complaints

After deciding to start the hedge fund with just $100,000 USD & CND, I finally began to purchase the options I wanted only to find another problem. It seems the diversification rules are a pain in the ***. It won’t let me buy more options. I have only used my USD to buy options and I’ve only purchased four different types. Now, with more than $70,000 USD sitting in cash, it keeps failing my trades for diversification reasons. Argh!

I’ve been so busy trying to get the options purchased that I haven’t had time to look around for any good Canadian investments. The only Canadian investment I have is SLW at the moment.

I really want to continue to pick up more options for my USD account and find some good up and coming CND investments. That will be my focus for the next while.

This portfolio is engineered (at least I hope it is) to do well in the long term… time will tell.

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