How do you attempt to manage volatility, if at all? Or do you rather consider yourself an investment partnership and not a “hedge” fund per se and just live with it? Just curious given the nature of the small companies in which you invest… Thanks!
I consider myself an investment partnership. I own stocks that I want to own for years. I trade around positions and I use liquid vehicles for that–but most of the portfolio is stuff that I intend to own for a long time and I just ignore volatility. I could hedge and have less volatility, but then I’d have lower returns over time. That would do no one any good. If someone cannot handle volatility, they should have smaller positions.
I found your site via Flecks after reading some of your articles on his site. I like your ideas and was reading your Kuppy’s rules and noticed that you have investors. Am I correct in saying that? If so are you looking for more investors? Or do you just manage your own money/family etc..?
I am glad you like the site. I do have investors. I am not looking for any investors currently. The fund has been closed to new investors for over a year and I think it’s better that way. I manage money for a few dozen people including myself/family.
what did you think of the financing agreement that anmcf just did? also, do you think with the rise in gold the juniors like anmcf and aqsff will start to move?
Firstly, AQSFF is not a junior mining company.
ANMCF is an interesting situation. The feasibility study applied to the higher grade ore announced recently seems to imply that once they hit steady state production, they’ll earn 100-300m in cash flow a year based on current metal prices. Clearly, based on the current share count, this implies a lot of upside if they can achieve their goals. Can they? I’ve been to the ore body. It’s there. It’s better than I expected. It now comes down to getting funded and building/operating the mine. There’s a lot of question marks and this is mining…. I think the financing just announced could be beneficial because it elminates dilution if they can get the banks to fund the rest of the mine. The problem is that this is a burning match. If they cannot get this funded in a year, they have to pay back the debt. I haven’t said anything about this company because i have been waiting for them to get further along in the financing so that it’s less speculative. If it moves along, I’ll likely write a full piece about it. Clearly, i’m biased as I own shares. For now, it’s a very speculative idea that is undervalued based on the asset.