tag:blogger.com,1999:blog-6515072458415501165.post1649113166439085546..comments2023-09-08T03:55:55.357-04:00Comments on Analyze Capital LLC: The Three Wise MenAnalyze Capital LLChttp://www.blogger.com/profile/13893472370721559294noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6515072458415501165.post-82516108097880601122010-11-18T01:02:26.883-05:002010-11-18T01:02:26.883-05:00Hi there Pat and Alex,
I hope that you're doi...Hi there Pat and Alex,<br /><br />I hope that you're doing well. If I may express a very quick opinion, the general consensus around funds that we've held in high esteem over the years is that looking at 13Fs is almost useless in terms of incorporating into any strategy or mindset. Sadly, we share the opinion.<br /><br />I'm certain that you two, given how smart you are, would know some reasons why. First off is of course that they only report holdings as of the end of the quarter. And within days, such as the case this quarter, they could completely alter their entire strategy/portfolio/mindset in an instant. The first week of October in this year was seen by many in the industry as being a gamechanger.<br /><br />Secondly the 13Fs don't report everything. While it is true hardly any HFs truly "hedge," the 13Fs will never include any Fut/FutOpt/Currencies which many prominent HFs use as daily trading vehicles to hedge (even Buffett was rumored to use these before 2008 which could have cost him in the crash).<br /><br />Thirdly, and this one is definitely more subjective than anything, many of the people who use 13Fs as an important part of their strategy are often among the "morons" of the industry. I mean the James Altuchers of the world aren't exactly among the upper tier, and I believe I'm being very kind.<br /><br />I know that you two don't incorporate the 13Fs as a big part of what you do, but just thought I'd give a refresher about their shortcomings anyway. There's no harm in looking at them, but be wary drawing conclusions or inferring anything significant out of them IMO.Anonymousnoreply@blogger.com