Mall Tour 2017

June 25, 2017 7:19 PM


For the past few years, most retailers have struggled. Of course, it’s easy to blame Amazon.com, but it is only one of many causes. At the same time, for us hedgies living in major cities with luxury malls, there is confusion about the problem itself—my mall is crowded and people are shopping. After having debated with friends endlessly on what the real root of the problem is, I decided it was time to actually go investigate. Every city has its own story and the local mall is the nexus of that s... more

Categories: Travels
Positions Mentioned: none
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Ready, AIM, Sell??

June 13, 2017 9:06 AM


I have spent much of my career looking for strong macro trends that will drive the performance of individual companies. However, over the past few years, I’ve had much more success buying overreactions to bad news, as the makeup of the market has changed and short-term thinking pervades investment decisions. Often, large fund holders sell without even understanding what the news means. Instead, they’re more concerned with showing their investors that they didn’t own a stock that’s down 80%--... more

Categories: Current Investments
Positions Mentioned: AIM CN
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The Lowdown From LD Micro

June 11, 2017 11:11 AM


I don’t attend a lot of investment conferences as I prefer visiting companies on their home turf —you learn more that way. However, the LD Micro Invitational is “special” and after having missed the last few, I felt compelled to attend last week's and get an update on the state of micro-cap investing (I define micro-cap as companies trading for under $50 million market cap). Besides, where else can you gain access to almost 200 undiscovered companies, knock off a dozen 1 on 1’s and drink all... more

Categories: General
Positions Mentioned: none
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Re-Reinventing The Death Spiral

May 31, 2017 5:40 PM


On April 9, I wrote about how certain companies have death spiral financings in place and you could literally short them at will for almost risk free returns. Now, barely 7 weeks later, Dryships Inc (DRYS – USA) is already down by 90% since I wrote that piece. I’ve been shorting DRYS and a few others like it for quite some time and re-loading as the position size declined—hence my returns have been even better than that 90% return. However, based on last Friday’s update, the balance sheet is... more

Categories: Current Investments
Positions Mentioned: none
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Performance Pressures Lead To Underperformance...

May 17, 2017 11:07 PM


A few weeks back, I was catching up with a friend of mine who runs a very successful high yield fund and naturally, the conversation turned to the markets. Me: Congrats on yet another great year in 2016. Him: Yeah, we beat our benchmark, but I’m sort of bummed. 2016 was the year we really should have killed it. They just gave away money in fixed income. Me: So, why didn’t you crush it? Him: Well, even though we made some room at the end of 2015, we went into 2016 over 80% invested—so the... more

Categories: Investment Strategy
Positions Mentioned: none
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