“Do not pick up nickels in front of the steamroller!”

first_img continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr It seems like every time a sudden and severe shock hits the financial markets, all the fancy hedge fund investment strategies that use monikers like, “Enhanced Return,” or “Alpha Plus” go from being perfectly fine to gone within a month. This has happened in the major market blow-ups in 1998, 2001, 2008, and 2020, with a few notable semi disasters (2002, 2013, 2016) thrown in between. Then, when the dust clears, investors are pulverized, and fund managers close up shop so as not to have to work the next 5 years for free to make up remaining investors’ losses.Naturally, with 2020 being easily the worst economic disaster to hit in nearly a century, the “Alpha” and “Enhanced” hedge fund story has been no different. Recently, one fund run by a very prominent money manager dropped a cool 75% in March. You almost have to try to lose 75% in a month, kind of like Max Bialystock and Leo Bloom in “The Producers.” Many other hedge funds have followed suit, only losing 25% or so. What we find is the same, old story. We find out that the managers with their rocket scientist degrees were, when it comes down to brass tacks, selling puts and calls on an index like the S&P 500 and collecting premiums every month –which was great until the market blew up. Sure, they may have been trading fancy things like “Skew Vol” vs. “VIX” or some other attributes with Greek letters, and no doubt, there were some cool algorithms, but in the end, it was simply selling volatility that blew them up. We call this, “The Picking up Nickels in Front of the Steamroller” strategy.So much of the selling volatility strategies are part of “The Fed has my back” approach to market investing. Let’s face it; the Fed has been supportive of risk for far too long. The increase in their support has been parabolic. This is what leads to long periods of declining volatility and price inflation for risk assets like equities and corporate credit. Pressure builds, as the degree of Fed support increases, and each blow-up tends to be more spectacular than the last. That is why, before the Fed and Treasury came in the markets in March with the message of, “Put the sell button down, we’re going to be buying everything!” the most liquid markets in the world, US Treasury and Agency Mortgage-Backed Securities markets were simply broken. Anyone who relied on leverage through borrowing was being margin called out of existence.last_img read more

Angels’ Albert Pujols drops below fifth in batting order for first time since 2001

first_imgAusmus said he “would be lying if I said I wasn’t concerned” about the 33-year-old.Cozart spent the past four weeks mulling mechanical changes to his swing and speaking to coaches on possible modifications. When asked if this could evolve into a career-altering injury, Cozart paused for a moment.“It’s kind of looking that way,” he said, rubbing his forehead.SIMMONS BACK ON REHAB ASSIGNMENTShortstop Andrelton Simmons continued his rehab assignment with Class-A Inland Empire on Tuesday after suffering a Grade 3 ankle sprain in late May. The 29-year-old’s recovery was slowed last week when trainers detected a “noticeable limp” during another rehab assignment in Orem, Utah.Simmons was scheduled for just one rehab game so far, Ausmus said, and he was expected to play seven innings Tuesday.“Literally, the old adage (of one day at a time) is true,” the manager said with a smile.OFT-INJURED ALEX MEYER RETIRESPitcher Alex Meyer announced his retirement on Instagram on Tuesday after the righty suffered multiple shoulder injuries. The former first-round pick of the Nationals last pitched two years ago for the Angels, throwing one of his finest games in what would be his last. In seven scoreless innings against the team that drafted him in 2011, he gave up just one hit and one walk in a 7-0 victory on July 19, 2017.“I never thought in 2017 I was throwing my last pitch, but not everything goes how we expect it to,” Meyer wrote on Instagram. “After multiple surgeries and countless hours of rehab, the end of the road for my baseball career has come.”ALSOPitcher Trevor Cahill will be activated Wednesday, Ausmus said, but he will not necessarily start in the second game of the six-game homestand. Ausmus had not settled on a Wednesday starter when asked by reporters before Tuesday’s game. Cahill has been on the IL since Jun 9 with right elbow inflammation.UP NEXTAngels (starter TBD) vs. Reds (RHP Tanner Roark, 5-6, 3.47), Wednesday, 5 p.m., Fox Sports West, 830 AM Since being placed on the IL about a month ago, Cozart said he’s received almost every possible treatment allowed on his shoulder. Yet his range of motion is still limited to just lifting his left arm to shoulder height and stretching it across his chest, he demonstrated to reporters in the clubhouse on Tuesday.“Not only do I have pain, but it’s affecting (me) to where I can’t even be half of what I can be out there, so it’s just super frustrating,” the infielder said. “I don’t have an answer for you.”He’s hoping Meister will give him a clear answer about what to do next. The news doesn’t have to be all positive, Cozart said, he just wants it to be clear.“I just want, like, a firm answer on how we’re going to do the rehab and get after it,” Cozart said.Related Articles Jose Suarez’s rocky start sinks Angels in loss to Astros Angels offense breaks out to split doubleheader with Astros Newsroom GuidelinesNews TipsContact UsReport an Error Angels’ poor pitching spoils an Albert Pujols milestone center_img ANAHEIM — Brad Ausmus didn’t realize what he had done when he set his lineup for Tuesday’s game against the Reds. The Angels manager innocently listed Albert Pujols as hitting sixth, but instead ended an 18-year streak for the slugger.It was the first time since 2001 – Pujols’ rookie season – that he batted lower than fifth. Ausmus said he wasn’t aware of the streak heading into the game.“He’s one of the greatest hitters ever. I’m not surprised,” Ausmus said of Pujols’ rare position toward the bottom of the order.The Angels’ first-year manager said improved health prompted the lineup switch, along with hoping to mix right-handed and left-handed hitters. Right-handed-hitting left fielder Justin Upton, nearly two weeks removed from the turf toe injury that cost him 71 games on the IL, batted fourth Tuesday. Shohei Ohtani has yet to pitch after Tommy John surgery but returned in May as a designated hitter. “We have Ohtani back, Upton back,” Ausmus said. “Throw (Tommy) La Stella in there. He’s exceeded what our expectations were by a lot. That’s all that is.”La Stella, a finalist for the All-Star starters election, is hitting .297 this season with 43 RBIs and 15 home runs this season.COZART CALLS REINFORCEMENTS FOR SHOULDER INJURYAfter four “frustrating” weeks on the IL, infielder Zack Cozart will see Rangers team doctor Keith Meister on Monday for another opinion on his surgically repaired left shoulder. He has already consulted with the Angels’ physician Steve Yoon, who spoke with surgeon Neal ElAttrache but hasn’t seen any progress since undergoing a procedure last year.ElAttrache told Cozart his shoulder would feel different after the surgery tightened the labrum that had been loose for nearly a decade. The procedure worked, but Cozart admitted Tuesday he didn’t fully understand how difficult the process would be.“I would hope that I would have an answer, or OK, it might be going slow, but I’m progressing to where I can see the light at the end of the tunnel, but right now, I don’t really see it,” Cozart said. Angels’ Mike Trout working on his defense, thanks to Twitter Angels’ Shohei Ohtani spending downtime working in outfield last_img read more