If beating the billionaire hedge fund mangers seems like a dream to you, then I am about to give you a reality check. Before I go there, let me share with you some of the results of these billionaire hedge fund managers this year. I'm only going to give you the top three, as they have achieved outstanding results.
Let's start off with the number one hedge fund manager of the year. I'm sure you're familiar with this name, as it seems to be in the news every week. I'm talking about Carl Icahn. Icahn has produced an incredible return of 48.96% year-to-date. That truly is an amazing return, but he's not alone. Next up is David Einhorn with a return of 41.37% YTD. Bringing up the rear with a very impressive 27.95% return YTD is Bill Ackman.
I think we can all agree that these three brilliant billionaire fund managers have all produced outstanding returns so far this year. I congratulate all three hedge fund managers. It's even more remarkable when you consider that the stock market hasn't had much sustained movement to the upside this year. In fact, just recently most of the major indices were flat to lower on the year.
This leads me to the main lesson at hand... with the right tools you can surpass the returns of these hedge fund all-stars.
Now here's my analogy, and we have to go back a few centuries in time to 1588 when Spain fought an important sea war with England. The Spanish Armada was invincible at that time and had every advantage over the British. So, how is it that this invincible force lost this very important naval encounter? I’ll give you a clue; it had everything to do with the size and the superior guns of the British ships. You see the British ships were smaller, nimbler and were able to out maneuver the ships of the much bigger Spanish Armada. The British then used their superior long-range cannons to win the day and score a game changing victory for England.
I want you to think of yourself as a smaller nimble trader vs. The Carl Icahn, David Einhorn and Bill Ackman's of the world. Think of those three traders as the Spanish Armada, they have huge amounts of money to manage and make a good return on. As their gains get bigger each year, it gets more difficult for them to maneuver within the market.
Now, I want you to think of yourself as the British fleet, you are smaller and nimbler and can get in and out of markets that these big boys can't.
To make this even easier for you to beat these billionaire hedge fund managers, I have a game plan for you to do just that. Think of the game plan like your big cannons. Not only has this game plan shown outstanding results for the past six years, but it is knocking it out of the park in 2014.
I am talking about the World Cup Portfolio that we have been tracking and publishing since 2008. The portfolio has produced double digit returns every year. We update the portfolio every single day, so you know exactly what you have to do and where to place your money management stops. The other key element, of course, is diversification. We've diversified this portfolio into six different segments. Before I go any further let me show you the returns since 2008.
2008 501.6%
2009 48.5%
2010 35.5%
2011 186.7%
2012 57.6%
2013 77.1%
You can see there are a couple of triple digit returns, which are not what I consider to be the norm, but they do occur. You shouldn't expect to see triple digit returns every year. So far, through the first three-quarters of 2014, this same portfolio has produced a gain of 91.2%. If nothing else changes this year, this will be our third best year in terms of return on this portfolio.
So, let's dare to compare the World Cup Portfolio to the Billionaire's portfolio. Comparisons are through the end of the third quarter.
#1 Our Portfolio 91.2%
#2 Carl Icahn 48.27%
#3 David Einhorn 40.14%
#4 Bill Ackman 38.70%
Even if you cut the World Cup Portfolio results in half, you would fall right between Carl Icahn and David Einhorn. And that, my friend, is not a bad place to be. Caveat: As a word of caution, there are no guarantees in the business of investing for high returns. The fact, is some hedge fund managers and trading systems have lost money in the past. So keep that in mind as we move forward.
So here's your opportunity to battle those billionaire hedge fund managers. This portfolio could help put you on the road to success.
Now for the good news, did you know as a MarketClub member you have complete access to this portfolio every day of the week? If you didn't know, then you should take a look and see what you are missing. Not only is this portfolio diversified, it has very low correlation with the general market. It's a classic approach to lowering your risk while enhancing your returns.
If you're not yet a member of MarketClub, you can take advantage of a special trial membership for less than a couple of good cups of coffee. You can get started here. If you're looking for a way to diversify your holdings and potentially increase your returns, this may be the solution for you.
What I would recommend is that you track this portfolio on paper for a while and see if it makes sense and is right for you. As I mentioned earlier, this portfolio is all part of your membership package, so be sure to check it out.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
