Bored Hedge Fund Update
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- Posts: 4348
- Joined: Wed Oct 24, 2007 8:01 pm
Bored Hedge Fund Update
Last week-I finally had some time and I reactivated Spock's Bored Hedge Fund.
To remind anyone that has forgotten-the Bored Hedge Funds strategy is based on a short-term strategy to see if there is any money to be picked up around dividend dates.
I started last Monday-which was a big down day and the rest of the week seemed to also be mostly bigger down days.
Somewhat surprisingly, because the shares are bought right before the dividend dates-it seems to be a fairly forgiving strategy.
I implemented 12 turns with a turn equaling the number of whole shares I can buy for $750.
With one exception, I chose stocks that paid more than a 4% annual dividend so I am playing for the 1% (or more) quarterly dividend.
Of the 12 turns-I closed 5 turns last week with a gain (capital appreciation plus the dividend) ranging from .76% to 2.37%.
2 More turns were closed this morning with a .89% gain and 2.66% gain.
I basically have them all listed to sell automatically so I could pickup a 1% capital appreciation plus the dividend which is where the 2.66% gain came from-I just made the choice to sell the one turn at the .89% gain.
I am sitting on current capital losses on the remaining 5 open turns from last week which range from a negative 2.26% to a negative 6.15%.
I have no reason to sell at a loss at this time and the calendar works in kind of a fun way with this strategy. Because I buy the shares so close to the dividend-I only have to hold them 3 months to get half the dividend for the year-.etc etc. In that manner, It gets pretty forgiving pretty quickly.
Just say, in 3 months-I am sitting on a 1% capital loss, but I would get 2 of the quarterly dividends.-I could close out that turn at a capital loss and still make a profit on the deal.
To remind anyone that has forgotten-the Bored Hedge Funds strategy is based on a short-term strategy to see if there is any money to be picked up around dividend dates.
I started last Monday-which was a big down day and the rest of the week seemed to also be mostly bigger down days.
Somewhat surprisingly, because the shares are bought right before the dividend dates-it seems to be a fairly forgiving strategy.
I implemented 12 turns with a turn equaling the number of whole shares I can buy for $750.
With one exception, I chose stocks that paid more than a 4% annual dividend so I am playing for the 1% (or more) quarterly dividend.
Of the 12 turns-I closed 5 turns last week with a gain (capital appreciation plus the dividend) ranging from .76% to 2.37%.
2 More turns were closed this morning with a .89% gain and 2.66% gain.
I basically have them all listed to sell automatically so I could pickup a 1% capital appreciation plus the dividend which is where the 2.66% gain came from-I just made the choice to sell the one turn at the .89% gain.
I am sitting on current capital losses on the remaining 5 open turns from last week which range from a negative 2.26% to a negative 6.15%.
I have no reason to sell at a loss at this time and the calendar works in kind of a fun way with this strategy. Because I buy the shares so close to the dividend-I only have to hold them 3 months to get half the dividend for the year-.etc etc. In that manner, It gets pretty forgiving pretty quickly.
Just say, in 3 months-I am sitting on a 1% capital loss, but I would get 2 of the quarterly dividends.-I could close out that turn at a capital loss and still make a profit on the deal.
- tlynn78
- Posts: 8781
- Joined: Tue Oct 09, 2007 9:31 am
- Location: Montana
Re: Bored Hedge Fund Update
What's my cut?
To argue with a person who has renounced the use of reason is like administering medicine to the dead. -Thomas Paine
You can ignore reality, but you can't ignore the consequences of ignoring reality. -Ayn Rand
Those who can make you believe absurdities, can make you commit atrocities. -Voltaire
You can ignore reality, but you can't ignore the consequences of ignoring reality. -Ayn Rand
Those who can make you believe absurdities, can make you commit atrocities. -Voltaire
- Beebs52
- Queen of Wack
- Posts: 15149
- Joined: Mon Oct 08, 2007 11:38 am
- Location: Location.Location.Location
Re: Bored Hedge Fund Update
Hey. I saddled the horses and wrote prospectuses, prospecti, like that.
Well, then
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- Joined: Wed Oct 24, 2007 8:01 pm
Re: Bored Hedge Fund Update
Well, I have a little team building exercise planned for you 2. It is based on Navy Seal training. If you can make it through Hell Week-I might let you in if the results are negative.
Other than that-Week 2 was a good week for the Bored Hedge Fund-with the lesson being patience-patience patience.
All those negative open turns from last week are now closed (mostly today) at a gain-with the exception of one that I took a 45 cent loss on.
So for simplicity-I use a $7500 initial investment as my initial capital with a turn being the number of whole shares I can buy for $750.
Week 1: $48.21 gain or .64% return
Week 2: $71.23 gain or .95% return
Two week total======$119.44 gain or 1.59% Return
I only have 1 open turn currently sitting about 3% negative-there are a lot of ex-dividend dates coming up on June 29-so I have Monday and Tuesday to work on those-time won't permit today.
I really don't like not holding shares-but the lesson of the last 2 weeks is that I can buy a day prior to the Ex-dividend date and still come out ahead.
Other than that-Week 2 was a good week for the Bored Hedge Fund-with the lesson being patience-patience patience.
All those negative open turns from last week are now closed (mostly today) at a gain-with the exception of one that I took a 45 cent loss on.
So for simplicity-I use a $7500 initial investment as my initial capital with a turn being the number of whole shares I can buy for $750.
Week 1: $48.21 gain or .64% return
Week 2: $71.23 gain or .95% return
Two week total======$119.44 gain or 1.59% Return
I only have 1 open turn currently sitting about 3% negative-there are a lot of ex-dividend dates coming up on June 29-so I have Monday and Tuesday to work on those-time won't permit today.
I really don't like not holding shares-but the lesson of the last 2 weeks is that I can buy a day prior to the Ex-dividend date and still come out ahead.
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- Posts: 4348
- Joined: Wed Oct 24, 2007 8:01 pm
Re: Bored Hedge Fund Update
Week 3 of Spock's Bored Hedge Fund was a decent week.
Results-Gain of $84.15 for a weekly ROI of 1.12%.
Cumulative Return on Investment after Week 3 is 2.71%.
Results-Gain of $84.15 for a weekly ROI of 1.12%.
Cumulative Return on Investment after Week 3 is 2.71%.
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- Posts: 4348
- Joined: Wed Oct 24, 2007 8:01 pm
Re: Bored Hedge Fund Update
Week 4 Update:
Gain of $69.19 or .92% ROI.
Cumulative through Week 4.
3.64% ROI.
Gain of $69.19 or .92% ROI.
Cumulative through Week 4.
3.64% ROI.
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- Posts: 4348
- Joined: Wed Oct 24, 2007 8:01 pm
Re: Bored Hedge Fund Update
Week 5 ending July 15th gave us the first negative weekly return.
Lost $9.37 for a weekly ROI of a negative .12%.
Cumulative ROI after week 5 dropped to 3.51 percent.
While dividends are accounted for when I close a turn and not when I get the dividend which can be as much as a month apart; days like today are still kind of fun as I got 6 dividends.
I got caught with 3 open turns on tobacco companies right as tobacco stocks took a major dump.
I am currently sitting with large (potential) capital losses on 2 of them, however, I won't sell them at this level of a loss and will sit on them a while.
I was very glad today to get the opportunity to close one of the tobacco turns with a very small loss.
Lost $9.37 for a weekly ROI of a negative .12%.
Cumulative ROI after week 5 dropped to 3.51 percent.
While dividends are accounted for when I close a turn and not when I get the dividend which can be as much as a month apart; days like today are still kind of fun as I got 6 dividends.
I got caught with 3 open turns on tobacco companies right as tobacco stocks took a major dump.
I am currently sitting with large (potential) capital losses on 2 of them, however, I won't sell them at this level of a loss and will sit on them a while.
I was very glad today to get the opportunity to close one of the tobacco turns with a very small loss.
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- Posts: 4348
- Joined: Wed Oct 24, 2007 8:01 pm
Re: Bored Hedge Fund Update
Week 6 Results:
Gain of $11.75 (weekly ROI of .16%) for a cumulative gain of $275.16 and a cumulative ROI of 3.67%.
This week's gain should have been higher except I misread a number and sold one turn for a loss when I thought it was a gain and I would have held on to it for longer.
Live and learn I guess.
As a reminder, ROI is figured based on the $7,500 initial investment and I only count closed turns. With turns being the amount of whole shares I can buy for $750. I might fudge a little and spend $760 or so if it is close.
Gain of $11.75 (weekly ROI of .16%) for a cumulative gain of $275.16 and a cumulative ROI of 3.67%.
This week's gain should have been higher except I misread a number and sold one turn for a loss when I thought it was a gain and I would have held on to it for longer.
Live and learn I guess.
As a reminder, ROI is figured based on the $7,500 initial investment and I only count closed turns. With turns being the amount of whole shares I can buy for $750. I might fudge a little and spend $760 or so if it is close.
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- Posts: 4348
- Joined: Wed Oct 24, 2007 8:01 pm
Re: Bored Hedge Fund Update
Some cash-in-Lieu of a spinoff deal showed up today after I closed the books for the week early.Spock wrote: ↑Fri Jul 22, 2022 11:17 amWeek 6 Results:
Gain of $11.75 (weekly ROI of .16%) for a cumulative gain of $275.16 and a cumulative ROI of 3.67%.
This week's gain should have been higher except I misread a number and sold one turn for a loss when I thought it was a gain and I would have held on to it for longer.
Live and learn I guess.
As a reminder, ROI is figured based on the $7,500 initial investment and I only count closed turns. With turns being the amount of whole shares I can buy for $750. I might fudge a little and spend $760 or so if it is close.
So adjusted numbers for Week 6 are a Gain of $16,17 (.22% ROI) with a cumulative gain of $279.58 and a cumulative ROI of 3.73%.
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- Posts: 4348
- Joined: Wed Oct 24, 2007 8:01 pm
Re: Bored Hedge Fund Update
Week 7 was the best week so far by far with a gain of $116.40 and a weekly ROI of 1.55%.
Cumulative gains of $395.98 and a cumulative ROI of 5.28%.
Most fun for me this week is that I was able to close one turn for a small gain that I had been sitting on for a month.
It had stubbornly hung around a (potential) 4% loss, but I will rarely close turns at a loss unless it is a small loss on a turn that I have been sitting on for awhile.
Cumulative gains of $395.98 and a cumulative ROI of 5.28%.
Most fun for me this week is that I was able to close one turn for a small gain that I had been sitting on for a month.
It had stubbornly hung around a (potential) 4% loss, but I will rarely close turns at a loss unless it is a small loss on a turn that I have been sitting on for awhile.
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- Posts: 4348
- Joined: Wed Oct 24, 2007 8:01 pm
Re: Bored Hedge Fund Update
Haven't updated for awhile. Since Week 7-I believe.
Through Week-13 (Ended September 9) I had a cumulative gain on closed turns of 9.9%. No turns have closed in the last 2 weeks.
With the recent stock market drops there has been no activity and my 10 open turns are sitting with an unrealized loss of anywhere from a negative 10% to a negative 30% loss.
I have thought a lot about this as a weakness of the strategy and I have come to the conclusion that it really isn't. If I had owned certain shares and didn't trade them-it is likely that I would also be sitting on a similar substantial (unrealized) capital loss.
I have no plans to sell for these losses and I guess I will just sit on them and collect dividends until things turn around.
I do have to figure out how to account for 2 (or more) dividend payments in my spreadsheet as the strategy was built around only collecting one and selling it. Conceptually, it is not as easy as it sounds.
One plus, that I have previously mentioned, is that since I purchased the stocks right before the dividend date I will get half the year's dividend payment in just 3 months-etc etc.
The last few weeks I have made one minor change to the strategy and I have been converting the turns from $750 to $1,000 with the idea that I will have less moving parts to deal with as we move into harvest. So I have a few turns still at $750 and some at $1,000.
Oh well, the market downturn has solved the moving parts problem as it looks like it might be awhile before any of my turns close.
As time goes by I might close one turn at a loss just to start things moving again and see what happens.
Through Week-13 (Ended September 9) I had a cumulative gain on closed turns of 9.9%. No turns have closed in the last 2 weeks.
With the recent stock market drops there has been no activity and my 10 open turns are sitting with an unrealized loss of anywhere from a negative 10% to a negative 30% loss.
I have thought a lot about this as a weakness of the strategy and I have come to the conclusion that it really isn't. If I had owned certain shares and didn't trade them-it is likely that I would also be sitting on a similar substantial (unrealized) capital loss.
I have no plans to sell for these losses and I guess I will just sit on them and collect dividends until things turn around.
I do have to figure out how to account for 2 (or more) dividend payments in my spreadsheet as the strategy was built around only collecting one and selling it. Conceptually, it is not as easy as it sounds.
One plus, that I have previously mentioned, is that since I purchased the stocks right before the dividend date I will get half the year's dividend payment in just 3 months-etc etc.
The last few weeks I have made one minor change to the strategy and I have been converting the turns from $750 to $1,000 with the idea that I will have less moving parts to deal with as we move into harvest. So I have a few turns still at $750 and some at $1,000.
Oh well, the market downturn has solved the moving parts problem as it looks like it might be awhile before any of my turns close.
As time goes by I might close one turn at a loss just to start things moving again and see what happens.