My Hedge Fund: October 2007

October 31st, 2007

I did awesome this month with My Hedge Fund. Last month was quite a good month too with My Hedge Fund gaining 9.20%. The total value of the Hedge Fund is now $249,272. I started the hedge fund just three months ago with $200,000. That would make the total return since inception 24.6%. That is an AWESOME return in three months!!!! In the last month alone I achieved a 15.8% return, my best month ever.

Investment Returns

I’ve done much better investing the USD portfolio over the CND portfolio. That is to be expected considering my USD portfolio is entirely invested in stock options. The original $100,000 USD is now worth $129,601. The original CND $100,000 is now worth $119,671.

In the last month I have not changed ANYTHING in the portfolio EXCEPT I bought 13,000 shares of Geologix Explorations Inc [TSX-V: GIX] for $1.90 a share in the CND portfolio. I made the trade on October 11, 2007. It is now October 31, 2007 and the share price is sitting at $2.57. That is a 35.26% gain in under a month on that stock. I made the purchase after reading a commentary by Peter Grandich and after hearing he has his biggest stake ever in a single company on this stock and has recommended it to family/friends.

POTENTIALLY MAJOR PROBLEM

Investopedia seems to be screwed up at the moment. Just days ago all was fine but when I logged into my account today the account value is higher than the actual holdings. Basically there seems to be an issue with my Northern Dynasty Minerals Option. I bought an IN THE MONEY call option 2008/02/16 call on NORTHERN DYNASTY MINERAL at $2.50 under the symbol NAK BZ. The current share price of the underlying stock, NAK, is $12.10. I paid $7.70 per option. I am WAY up on this option just days ago the gain was in the double digits. Now it is registered as value of $0.00 and a loss of $19,250. This is wrong because there appears to be bids for the option at over $9.00! So I’ve emailed Investopedia hoping they will clear this mess up, otherwise my account value will plummet due to a stupid error! The option DOES NOT EXPIRE until February of 2008 and its IN THE MONEY! So, there is something going on that doesn’t make any sense. I’ll keep you posted on what happens here.

Summary

With more than a 15% gain over last month and a total portfolio gain of 24.6% in just three months, I’m doing quite well and I’m really excited to see what I can accomplish in a full year. If I were to keep this pace up I could expect to have 150% and 270% return in one year. The last couple days of October weren’t kind to me… check out End of Month Teaser on Investing and look at the picture of the account holdings and annual return on the first picture… I would have had even better results.

I just don’t know if I can keep up this pace (I actually doubt it, if I can keep up this kind of pace for any length of time I could get rich way too easily… and it isn’t THAT easy to get triple digit percentage returns without exceptional risk). I would have been happy with a total portfolio return of over 20% for a year… but I won’t complain if I do better .

Entry Filed under: My Hedge Fund