New Site & Fund Update
Some updates....
Welcome to the new readers here.
I got back to Phoenix last week and it’s been nothing short of non-stop work which is why making that move to Puerto Rico has been great: for work and business benefits!
This place is absolutely booming and (sadly) it seems it might be the new Los Angeles with all the folks moving here (that’s probably what they say about us in Puerto Rico too!) - but it is booming and it’s everywhere.
I was at Sister Cities Intl. luncheon with my attorney (blue coat) yesterday and hearing the Mayor of Phoenix and others talk about the growth here is unreal.
The new chip factories from Taiwan semiconductor is just massive and the jobs coming with it are as well.
That’s good for SMBs and one of the SMBs I’m invested in is just about to complete a tuck-in acquisition. For those that follow this blog, a year ago I decided to start dipping into SMBs - but mainly in the service industry, and while there were some hiccups this growth in Phoenix is helping that sector.
So I decided to acquire a smaller operator to handle growth and to build this company further.
Doing this type of stuff is great because it gets me away from the day-to-day of trading which I don’t really do much of anymore anyway but it’s a great shift to deal with “real” assets.
Hedge Fund Update
In 2020 I launched my hedge fund, finally, after years of getting distracted with other companies and it’s been a longer-term goal to get done. As of this year, I winded down the Limited Partnership structure to join my brother’s RIA (registered investment adviser).
He started his firm in 2016, took some years off, and brought it back. So I’ll be joining him in handling research and portfolio management which is going to be great.
I talk about it all the time in the markets and in running an actual physical business like this commercial cleaning company I’m invested in - you need structure and you need certain folks to handle certain roles and do what they’re good at.
Not everyone is meant to be a trader, some are good at research, and there’s a role for that. Just like not everyone can be a portfolio manager and see things from a 30K foot view - but then again, that’s why PMs have analysts and execution traders so they can focus on the big picture.
My brother is a macro-analyst and ex-financial advisor at Merrill Lynch so what he sees in terms of client management and things like say, the issue with JGBs or Japan Central Bank Policy, I don’t.
But together, I can take what he sees, digest it then come up with a creative way to execute it, and together that creates a powerful combination.
The firm will be running an SMA (Separately Managed Account) structure hence the LP wind-down - for reference, the costs associated with Limited Partnerships, etc. are enormous and the SMA model provides firm clients with transparency which we like.
Eventually, the LP model may come back but joining his firm with this model is a better fit, for now.
New Website:
I also had a new website built for TheLongVol - and like I’ve always said the same research I write in that report is applied to my fund and was applied to my brother’s RIA the last year as he used it for his clients.
Not a hard pitch but take what I said above about delegation - delegating things out to others frees up time and brings value, same with the company I’m tucking into mine here in Phoenix.
So if you’re not reading that TLV Report and doing it on your own you should consider it - really, take a new perspective and approach to markets and you might find yourself getting more creative.
That’s it for the updates.
Let’s see what Summer trading brings us and with this banking crisis just starting I don’t think this is a Summer of low vol at all.
Dan
This article is presented for informational purposes only, is an opinion, is not intended to recommend any investment, and is not an offer to sell or the solicitation of an offer to purchase an interest in any current or future investments. Any such solicitation of an offer to purchase interest will be made by a definitive private placement memorandum or other offering documents.
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