Another Secret from my Hedge Fund Trader Friend, on how to Build your own ETF ($TAN)


Rumors have been swirling about the Solar Industry coming back, and I think it was officially confirmed on Monday when Bloomberg reported that the great Warren Buffett was interested in buying the bankrupt Chinese solar company, Suntech Power ($STP).

Buffett for the past two years through his various companies has invested in Solar Projects and companies as he believes there is a real future for Solar in the US and the rest of the world as well as the potential for big returns. So when an event like this happens traders want to participate buy buying a basket of solar stocks or a Solar ETF. Yet this is not the best way or the most lucrative way to play Solar Stocks.

Instead do what my hedge fund trader friend does at his $10 billion dollar hedge fund, he buys 2 or 3 solar stocks that he think will go up the most. Why?

The Solar ETF is too diversified and holds solar stock that are not Chinese based, remember Buffett’s latest target was a Chinese Solar Stock, so you want to focus on Chinese Solar Stocks only. Also the solar ETF ($TAN) will not give you quick triple digit returns which hedge fund traders look for. So what my hedge trader freind does is buy the most volatile, highest beta small cap and low priced solar stocks with the best charts, because stocks in the same sector like Solar all move in tandem. So to produce the biggest returns from solar stock you want to buy the two or three solar stocks that will go up the most if the Solar Group moves in price.

So using his methodology, good charts, low priced high beta stocks, I found two excellent low priced Chinese Solar stocks, that are not only low priced below $5 but have awesome charts and are volatile. I believe both of these Chinese solar stocks will go up 100% or more in the next 3 months if Solar stocks continue to move higher.

To find out the 2 solar stocks that I am buying, which I think will go up 100% or more in the next 3 months email at

Will Meade
Editor of the Billionaires Portfolio