NakedShorts' InvestorLetters

We’re a bunch of clever clogs

We do not have a penny invested in Amaranth. We did inherit a $30m position in the fund last year in a portfolio we took on from a competitor. Following on-site meetings with founder Nick Maounis and his team, we decided to redeem from the fund; moreover, our concerns were sufficient to justify paying a redemption penalty for an early exit.

Fauchier Partners, Oct. 2006

Information packets and trend-following

We are often asked why we don’t use fundamental information. Surely the inflation numbers or unemployment reports could tell us something about market direction? The problem with relying on this somewhat limited information is that it just does not come that often…

We prefer using the continuous information that is available through prices every day…We believe processing continuous information is better than focusing on information announcement packets which may have changing sensitivities with the market.

Mark S. Rzepcynski PhD
John W. Henry & Co
Monthly Market Commentary: November 2005
(Extract lightly edited)