Seeking Alpha

David Pinsen

 
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  • A Lower-Risk Way To Invest In The Nasdaq
    Fri, Apr. 11 QQQ, PSQ, TQQQ Comment!

    Summary

    • During the average 6-month period over the last 10 years, QQQ has returned 4.73%.
    • QQQ shareholders suffered a decline of 42% during one of those 6-month periods.
    • A hedged portfolio, such as the one shown below, can offer a higher potential return with less than half that drawdown risk.
    • This portfolio has a negative hedging cost, meaning an investor would essentially be getting paid to hedge with it.
  • Building A Hedged Portfolio Around A Genworth Financial Position
    Fri, Apr. 4 GNW 3 Comments

    Summary

    • You can hold a position in Genworth, while strictly limiting your risk with a hedged portfolio, such as the one shown below.
    • This portfolio has a negative hedging cost, meaning you would effectively be getting paid to hedge.
    • This portfolio is designed for an investor who wants to maximize his potential return, while limiting his downside risk to a drawdown of no more than 16%.
    • Investors with higher or lower risk tolerances can use a similar process, though their potential returns may differ.
  • Considerations For Hedged Netflix Shareholders
    Wed, Mar. 26 NFLX 6 Comments

    Summary

    • NFLX shareholders who hedged last month with the hedge shown below were down 6.8% from 2/18 to 3/25, while the stock was down 15.1% over the same period.
    • Hedged NFLX shareholders can exit now with a smaller loss, hold, or use their appreciated hedges to buy more of the stock.
    • Given Carl Icahn's announcement Monday, plus NFLX's still-rich valuation, exiting now may be a prudent choice for hedged NFLX shareholders.
  • A Lower-Risk Way To Invest In Financials
    Mon, Mar. 24 AIG, AXP, C 1 Comment

    Summary

    • During the average 6-month period over the last 10 years, the financial sector ETF XLF has generated a return of -0.37%.
    • XLF shareholders suffered a drawdown of about 51% during one of those 6-month periods.
    • A hedged financial portfolio, such as the one shown below, can offer a higher potential return with less than half that drawdown risk.
    • This portfolio has a negative hedging cost, meaning an investor would essentially be getting paid to hedge with it.
  • Building A Hedged Portfolio Around Microsoft
    Wed, Mar. 19 MSFT Comment!

    Summary

    • You can hold a position in Microsoft while strictly limiting your risk with a hedged portfolio, such as the one shown below.
    • This portfolio has a negative hedging cost, meaning you would effectively be getting paid to hedge.
    • This portfolio is designed for an investor who wants to maximize his potential return while limiting his downside risk to a drawdown of no more than 16%.
    • Investors with higher or lower risk tolerances can use a similar process, though their potential returns may differ.
  • Investing Alongside The Oracle Of Omaha While Limiting Your Risk
    Wed, Mar. 12 IBM, KO, PG Comment!

    Summary

    • You can invest in Berkshire Hathaway and its top holdings while limiting your risk by using a hedged portfolio, such as the one show below.
    • This portfolio has a negative hedging cost, meaning you would effectively be getting paid to hedge.
    • This portfolio is designed for an investor who is willing to risk a maximum drawdown of up to 10%.
    • Investors with higher or lower risk tolerances can use a similar process, though their potential returns may differ.
  • A Lower Risk Way To Invest In Utility Stocks
    Mon, Mar. 10 XLU 15 Comments

    Summary

    • During the average 6 month period over the last 10 years, the utility ETF XLU has generated returns of about 4.31%.
    • XLU shareholders suffered a drawdown of about 37.5% during one of those 6 month periods.
    • A hedged utility portfolio, such as the one shown below, can offer a higher potential return with a third of that drawdown risk.
    • This hedged portfolio has a negative cost, meaning the investor essentially would be getting paid to hedge with it.
  • Building A Hedged Portfolio Around A SolarCity Position
    Sat, Mar. 8 SCTY 13 Comments

    Summary

    • You can hold a position in SolarCity while strictly limiting your downside risk with a hedged portfolio, such as the one shown below.
    • This portfolio has a negative hedging cost, meaning you would effectively be getting paid to hedge.
    • This portfolio is designed for an investor who wants to maximize his potential return while limiting his downside risk to a drawdown of no more than 16%.
    • Investors with higher or lower risk tolerances can use a similar process, though their potential returns may be different.
  • Investing Alongside 'The Apple Of Finance' While Limiting Your Risk
    Wed, Mar. 5 CIEN, IWN, VEA 2 Comments

    Summary

    • Betterment has been called the 'Apple of finance' for the sleekness of its design.
    • Over the last 10 years, betterment's 70% stock portfolio would have generated impressive average annual returns but also exposed investors to a large drawdown.
    • A hedged portfolio, such as one of the ones discussed below, can offer a higher potential return with significantly lower risk.
  • Building A Hedged Portfolio Around A Position In InterMune
    Fri, Feb. 28 ITMN Comment!
  • Investing Alongside The Best Buy & Hold Blogger While Limiting Your Downside Risk
    Tue, Feb. 25 AFL, BCR, DTV 5 Comments
  • Replacing This Treasury Bond ETF Can Lower Your Risk And Boost Your Potential Return
    Mon, Feb. 24 TLT 9 Comments
  • Constructing A Hedged Portfolio Around A Tesla Position
    Fri, Feb. 21 TSLA 68 Comments
  • Alloy Steel Releases Q1 Earnings
    Wed, Feb. 19 AYSI 4 Comments
  • Investing Alongside Carl Icahn While Limiting Your Downside Risk
    Wed, Feb. 19 IEP 1 Comment
  • Creating A Hedged Portfolio Out Of A 5-Star Mutual Fund
    Mon, Feb. 17 ADBE, CCI, MA 10 Comments
  • How To Maximize Potential Return While Protecting Against A Severe Correction
    Thu, Feb. 13 ADS, GILD, UA Comment!
  • Worried About A Market Meltdown? Consider This
    Mon, Feb. 10 BIIB, FB, GOOG 31 Comments
  • Rethinking Risk Management: A New Approach To Portfolio Construction
    Thu, Feb. 6 BIIB, CF, CNX 4 Comments
  • Alloy Steel Shares Spike 80% Thursday But Still Have A Bargain Basement Valuation
    Fri, Jan. 24 AYSI 17 Comments
  • Sell-Rated Stocks In A Complacent Market
    May. 31, 2013 BTU, EPS, GDX 6 Comments
  • Another Way To Play The Boom In Mobile
    May. 29, 2013 WIRX 10 Comments
  • Risky Stocks In An Expensive Market
    May. 19, 2013 BBRY, BSX, FIO 10 Comments
  • Key Questions From Tesla Skeptics
    May. 10, 2013 TSLA 50 Comments
  • Stocks That May Fare Worse In The Next Correction
    May. 7, 2013 ACI, AMD, GLD 2 Comments
  • Risky Stocks In A Rising Market
    May. 4, 2013 ACI, ATML, CHK 27 Comments
  • Caution May Be Warranted With These Stocks
    May. 2, 2013 ABX, CLF, JCP 4 Comments
  • Large Caps That May Fare Worse During A Coming Correction
    Apr. 30, 2013 AAPL, CSCO, F 1 Comment
  • Risky Stocks In A Complacent Market
    Apr. 26, 2013 ABX, BYD, MT 18 Comments
  • A Look At 5 Stocks Overvalued On A PEG Basis
    Apr. 23, 2013 AA, ABB, FNFG 4 Comments
  • 6 Small Caps Rated 'Sell' By Ned Davis Research
    Apr. 18, 2013 CIEN, IWR, NFLX 1 Comment
  • 5 Mid Caps That May Fare Worse In A Coming Correction
    Apr. 12, 2013 BBRY, FSLR, HK 5 Comments