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Friday, August 04, 2006

My New Job and My New Hairstyle

It's quite difficult adjusting to the life of a fund manager... you have to learn to take a bigger picture of things, at the same time balance it out with trying to limit losses and managing risk. It's also hard coming in at this stage of the market, nearing the Fed meeting, when the market has climbed a lot that its quite volatile (though it continues to move up). By the way I have a new hairstyle and people in the office are already giving me crap about it...it's the stressed out look, which is how I'll probably be the rest of my life as a fund manager.

After 3 days of trading, I've shown some modest gains of 0.44%, net of some minor losses. My holding primarily consist of stocks representing my top down view. I favor Rmb revaluation plays in HK, such as HK properties and China consumer plays. HK properties will also benefit from a potential pause in US rate hikes next week or at worst in Semptember. I already took half of my profits in 683, a nice gain. China consumer plays gives us a defensive attitude, as these are more of volume plays rather than asset appreciation plays (like commodities and China properties) which the Chinese government is trying to clamp down on.

In the US I like utilities and other high-yielding stocks, which is why i took positions in HIH and FCH, yielding 5% and 3.8% respectively. I also took a position in RTN... I believe the world is increasingly at risk of war everyday, especially with the US's hidden agendas. RTN also has good export exposure at about 20% of sales, which should make it a weak dollar play. Being an industrial exporter it is also immune from the US consumer slowdown. Along with NEM, I consider it as my core holding. Volatility has hit NEM's share price as the price of gold commodity has been climbing for the past few days, I have hedged it by shorting 7 call contracts with exercise price of $55 at $0.60. If there is no assignment on the calls I get to keep my $420:) I also have a current short position in LEND. The stupid stock got pummelled to $42.50 to my excitement, only to get short-squeezed back to $45.50. It's gapped down $1 or so after-hours... hurray...

As for my next moves, I am looking at 694 in HK, another Rmb and China domestic consumption play from another angle. In the US I'm looking to add on the RTN when it breaks out. Meanwhile, I've yet to put some 40% of the fund, allocated to the Philippine and bond markets respectively to good use.



At 12:40 PM, Anonymous Anonymous said...

where did u have your haircut? ricky reyes or bambi fuentes?

i also want that stressed out look!

=* #47


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