Absolute Returns Launch: Exclusive Portfolio Management And Trade Ideas

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Includes: BDD, BDG-OLD, BGR, BLNG, BOM, BOS, BTO, CEF, CRAK, DBB, DBE, DBP, DDG, DIG, DUG, ERGF, ERX, ERY, ERYY, FAS, FAZ, FAZZ, FENY, FIF, FINU, FINZ, FMAT, FNCF, FNCL, FTXN, FXN, FXO, FXZ, GLTR, HEVY, IYE, IYF, IYG, IYM, JHMA, JHME, JHMF, JJE, JJM, JJP, MATF, NANR, OIH, ONG, PEO, PXJ, RJN, RJZ, RTM, RWW, RYE, RYF, SBM, SEF-OLD, SMN-OLD, SPPP, UBM, UBN, UYG, UYM, VAW, VDE, VFH, XLB, XLE, XLF, XME
by: Josh Rudnik

Summary

Absolute Returns is an exclusive research platform for investors looking to profit in all market environments.

The goal is to foster a community of investors looking to find cutting edge investing and portfolio allocation ideas.

The service will revolve around strategies and trading techniques I have used to run a $500+ million account at my RIA firm for the last decade.

(Editors' Note: This article is meant as an introduction for Absolute Returns, a new Marketplace service by Josh Rudnik).

This month, I launched my exclusive research service Absolute Returns, helping to build flexible portfolios for all market environments.

I have learned over the years that you can't eat relative returns. When the market is down 20%, you can't tell your landlord to give you a break on rent because your portfolio was only down 2%. This service is an attempt to help investors outside of simply managing my clients' accounts. I have full discretion over the +$500 million absolute return focused portfolio that I manage, which means my clients are largely uninterested in the "Why" of my portfolio and are more concerned about underlying returns. While this is completely fine, I decided to share the "Why" of my investing approach with my Absolute Returns members.

My investing mandate is to generate positive returns through all market cycles, using stocks, ETFs, and options. All assets I trade are readily accessible through both brokerage and tax-deferred accounts.

I utilize a combination of fundamental and technical analysis to determine what to buy and when. This investing approach has allowed me to navigate the markets and manage my clients' money effectively during the various market cycles over the last few years. Although equity markets are strongly higher since the financial crisis, assets and sectors have come in and out of favor over that time. For example:

  • Coming into 2016, I was short equities, specifically banks and economically sensitive sectors that were declining rapidly due to concerns regarding the Chinese economy.
  • I quickly pivoted after the sell-off to buying precious metal miners and low-vol stocks which were breaking out higher due to the belief the Federal Reserve would not raise interest rates until later in the year.
  • Following the U.S. Presidential Election, my portfolio went long financials, and economically sensitive stocks which stood to benefit under the Republican-led government.
  • In early 2017, I went long tech names, such as FANG, EM growth, as well as semiconductors, which continued to trend strongly higher.
  • Finally, at the end of 2017, my positioning was towards financials, metals, materials, and energy names, which are currently fueling strong gains into the new year.

Markets move quickly, and my approach is flexible enough to move the firm's $500+ million portfolio in and out of assets and sectors continually generating double-digit annualized returns. Although some may construe this approach as market timing, I am simply looking for longer term trends in the market, and relationships among sectors and asset classes to position with a degree of probability where markets look to be headed. By subscribing to my Absolute Return service, you will have access to:

  • Real-time alerts for trades and portfolio positioning based on market developments and proprietary research.
  • Access to a live chat room for traders, with the ability to ask me questions about trade ideas or portfolio allocation.
  • Education on how I pick and manage positions using both stocks and options.
  • Learn how to generate double-digit returns on a consistent basis while also limiting downside risk.
  • Weekly and Monthly market and portfolio updates to stay ahead of the trends.

If you are interested in reading some of my articles to get an understanding of my approach, please follow the link here. For the first 4 weeks of the service, I will be offering a discounted introductory price of $39/month, or $319/year.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.