I am going to start off this blog defining our style of portfolio management. As I develop the content of the blog, I will also create pages of definitions as we go. For many words we use, I prefer to write my own definition. If you are unsure of a word, feel free to post a comment saying so and I will answer it. We’ll start out with definitions of “Absolute Return” and “Relative Return”. An absolute return objective is at the heart of all we do at Shell Capital. Strategies leading toward a real return over a market cycle will therefore be a major focus of this blog. That is, we’ll discuss what we believe and we’ll also discuss what we don’t believe. We’ll discuss what we do, and what we don’t do. We’ll discuss the vast human decision errors that cause the directional price trends we exploit, and we’ll discuss what doesn’t. We’ll talk about the big picture, the secular trends and cyclical trends within them. When prices are drifting down or volatility expands greatly we may comment on it here. We will not discuss our positions in the market on the non-client site. We’ll compare and contrast a lot of things. Sometimes we’ll pick on those on the other side of our trade; that is, those who make the opposite decision as us. We love them though; we need people to disagree with us and be on the other side of out trade. If we weren’t for them, we could never enter or exit. We’ll often make fun of the media and the guru’s in the media. Many of them are the poster child for whom not to be. As many of you know who have read my words over the past decade or so; this commentary will a paradigm shift, ever evolving, as all knowledge must e. As some readers know, this is not a new venture for me. I have been posting on private password- protected message boards for professionals and think-tanks for many years and I have notebooks 9 feet high to show for it. I started to write a book or three, but decided to instead share my evolution and research right here. But at the beginning and end of the day, I am a money manager, so I’m in the business of making trading decisions for investors. This is secondary. This will be an out for me, a creative break from that fire I play in. Giddy up.
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