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Omega List:
Yesterday in my commentary in my daily newsletter I mentioned the Omega List
and sung its praises. The context was the hedge fund problems that the
Chicago Art Institute is experiencing.
I stated that if the Omega List had been shown the same hedge fund deal that
the elite members of the Art Institute Board of Directors had, the OL members
never would have approved the investment.
This was a front page story in the WSJ last Friday. The hedge fund manager,
whose company was founded in 1997, claimed the highest Sharpe Ratio in the
hedge fund industry. He also claimed that the hedge fund partnership, which
traded stocks and index equity options, would make 1 to 2 percent per month.
The downside was if the market dropped by 30%. Sounded a lot like some
premium selling somewhere.
Anyway, I want you guys to know that my comments came from my sincere respect
for the wisdom, intellect, aggressiveness and rationalness of this group.
You guys cannot be bowled over with baloney, or sucking up. I said that if
something was presented to the OL as a duck and it did not quack and waddle
that you guys would have 100 questions and find the flaw. There has to be a
foul/fowl joke in there, but I can't think of it.
We all have something that we can collectively be very proud of here. This
list offers tremendous advice, perspective and input, in all sorts of manners
and styles. It is much like having a board of directors over your trading,
offering you advice from a variety of industries. I believe this board of
directors would have seen through the Art Institute's hedge fund problem.
Maybe we should hire out? :-)
Regards,
John J. Lothian
Disclosure: Futures trading involves financial risk, lots of it! John J.
Lothian is the President of the Electronic Trading Division of The Price Fu
tures Group, Inc., an Introducing Broker.
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