Fred Swartz

Paired Trades: Sell Collective Brands, Buy Shoe Carnival

Thanks for the clear answer. I find it somewhat curious that you (as well as others) make recommendations, but don't "eat your own dog food". Is this to avoid any taint of "pump and dump" or "front running"?


> Great question. In my business, I do advise clients on both longs
> and shorts. In my very personal trading, I use only ETFs. I do
> manage a long-only account for a family member (a charitable foundation).
> When I disclose a long, that is where I maintain exposure, even though
> I don't directly benefit in any way.

Paired Trades: Sell Collective Brands, Buy Shoe Carnival

Based on your disclosure statemenst, you don't pursue a long-short strategy, which would seem ideal for pairs.

I'm curious about the reasons for this: too risky, you don't think it works well, not appropriate for your business, unable to short many of the stocks, ...?