My Hedge Fund: More Fixin’

September 11th, 2007

My Hedge Fund needed some more fixing. As you already know, I’ve been having problems purchasing the desired amount of options for my portfolio. Today I discovered the reason! Apparently there was a feature labeled “Diversification Option: The maximum position of a single security as a percentage of starting capital: 0.10“. That was the problem all along! So I quickly changed it to 0.25 (25%) and then began to purchase more options.

Holdings

I hope to have $100,000 USD divided equally (or as close as possible) into four options: NAK, GRMN, YHOO & WFMI.

As for my Canadian portfolio of $100,000, I am planning to invest about 50% in small caps and the remaining 50% into high yielding stocks. So far I haven’t picked out the high yielding stocks, but I have picked out two small caps I’m excited about; ADI & SLW.

I’m almost certain this is a portfolio I would LOVE to have in real life. The only option I’m not entirely sure on is NAK, as it’s a shorter term option ending in Feb of ‘08. The rest of the options have an extra year or two to work their magic. I’m almost 100% certain this portfolio will kick butt. I only wish I actually had $200,000 to work with! If I get good enough, I would love to start a hedge fund (if you know anyone that has some money that they want invested…….).

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