2 Months have past into the 3 month "Eat my Hat" challenge since 13 February and the standings for each portfolio are as follows
Best Share Picks "Longs" by Program +5,60%
Top 40 Benchmark -15,20%
Worst share picks "Shorts" by Program -29,15%
Over the last week the gap between the long and the short portfolio has moved significantly, by more than 14%, and is now up to 34%. The out- and under-performance of (20,80% and 13,95%) above and below the Top40 benchmark, in only 2 months, are now really showing how well the program can identify the best, and the worst of shares on the stock-market. This long portfolio outperformed the Top40 by 20,8% in this 2 months and implies an out-performance of 210% on the value of your portfolio in one years time. Usually a fund would be impressed if they outperform the benchmark by 10% in one years time, and very few actually do. A 200% out-performance would just be a crazy figure.
For a hedge fund with gearing these figures would be even more impressive, and a much better selection of trades could be utilized. Figures of 400% growth for a year, could be a possibility. Currently the program are only selecting from 42 shares on the JSE. A wider selection of shares, combined with foreign shares, that utilizes exchange rates, could improve these figures even further.
Sasol was a large contributor for the Long Portfolio, as it was the number one pick for some time. It got sold out at R57-20, as it only showed a projected price of R69-00 with limited growth vs other shares like ANG and NHM. ANG has since been the Top pick and has also contributed largly to the long portfolio's out-performance.
Ascendis Health (ASC) has now been added on the watch-list, with even stronger growth figures than ANG, and will be added to the long portfolio on Tuesday.
With one month to go, the Risk/Reward of both portfolio's are still looking good and further out-performance is expected to continue.
Edited by Pilotpilot, 13 April 2020 - 12:18 AM.