Option Trading Blog

I have seen so many commercials in T.V lately, trying to market hedge funds, and it’s always nice to see that ALL of the funds are in the first place in returns.

So for you, the fellow fund manager, I dedicate this post to show you how everybody can be in the first place in returns. Confused? Don’t be.

The first thing you got to remember is that the devil is in the details. Suppose your fund made a killing from January to August, but had declined in the last months of the year. What do you do? simple, just exclude those months from your average and when your commercial runs in T.V and it says “1st place in returns!” make sure that you put these words, in the bottom of the the T.V screen, with an incredibly small font:”The calculation was done only from January until August”. Nice ah? But my friend, we are only getting started.

What is next you ask? Niches. Suppose your fund didn’t really make it to the top compared to other funds and the last trick I showed you didn’t help much because you managed to screw them all up. Why not find yourself a niche in retrospect? Let’s say you see that more than 50% of your assets were invested in currencies. Well my friend, you are now official a currency fund and by all means, you can now happily say that your returns are in 1st place compared to other currency funds.

But don’t think I’d let you go just yet with another trick. Suppose you made a respectable 8% this year. Okay, rightly so you are probably a bit unhappy because the market had returned 15% and people would make more money than you in the market by just buying the index and doing nothing more, not to mention saving all the costs of joining your fund. Here is the key though, like we said, the devil is in the details and who the hell knows anyway the market made 15%? We don’t need integrity and honesty in this business!

Note: Be advised that these only apply to funds in Israel and sadly may apply to funds all over the world