As everyone knows who reads this blog, I use my exclusive database, research and network of contacts to find out what stocks these top billionaire investors and hedge funds are buying and selling.
I have received a lot of emails lately asking me why this is so important. And secondly, I’m asked how I built this extensive network of contacts at the top of the world’s investment industry?
Okay, so first … Why is this information important/why should you follow the lead of some the world’s top hedge funds? It’s a simple answer: they are almost always right and they have long records of generating huge returns. That’s good enough for me.
To put this in perspective, the top 1% of all hedge funds, in terms of performance, have averaged 43% a year over the last 13 years. Let me say that again … my database of the top 1% of all hedge funds in the world, show returns that have averaged a combined 43% a year over the last 13 years. A $20,000 account at 43% a year would be worth over $2 million dollars today!
Next … so how did I build up this extensive database, research process, and network of contacts, to know the holdings at the world’s top hedge funds? Through my 10 years of experience working for one of the top ranked billion dollar hedge funds (founded by a former Goldman Sachs Partner and Harvard MBA). Add to that, during my time in academia, I studied economics and did deep statistical studies on hedge fund returns at some of the most prestigious schools in the world, Johns Hopkins University and The University of Chicago.
So with that being said, here’s the takeaway:
First, the information on what the best, richest investors are buying and selling will make you money. And it will make you money when the stock market is going up and down.
Secondly, you know who I am. You know the source of this information. I started in the hedge fund industry almost 14 years ago, before most people knew what a hedge fund was. I’m not some journalist who has written articles his whole life or some kid out of college or grad school giving you his opinion without any real world experience. If that’s what your looking for you, back your way out of this website. It’s not for you. You can find that all over the web and your favorite financial TV show or rag.
So this is my friendly reminder about the power of my niche investing specialty. My subscription service, The Billionaire’s Portfolio, is the only service of its kind that gives the everyday retail investor access to the trading secrets and stock picks of the world’s best billionaire investors and hedge funds.
There is no other service out there which allows the everyday retail investor to participate in the stock picks of the world’s best billionaire hedge funds. Why? Because you typically need a minimum of $10 million to invest with a top billion dollar hedge fund, and hedge funds by law are not allowed to market or give out performance to the public. You have to be an accredited investor (which means you have to be rich).
My company, Pure Alpha Research, recommends hedge funds to family offices, funds of funds, endowments and super high net worth people.
If you’re worth more than $5 million, give me a call. If you’re NOT, check out my service for the average guy at billionairesportfolio.com.
I have to say there are not many articles from the mainstream media that are worth reading, but an article from Bill Singer, who is a guest contributor at Forbes, really caught my attention. This is one of the best written and most important articles you will ever read. I promise you, just spend 5 minutes of your life to read this article. It will change your life.
If you are a customer of JP Morgan Chase, Bank or America, Merrill Lynch, Morgan Stanley etc…, if you have a stock broker from any of the major banks or companies, you must read this article.
So Mr. Singer says what everyone in the industry knows, that is, your stockbroker and banker is stealing money from you everyday. Not only does a JP Morgan banker lift your money by charging super high fees to its customers, but in this case, a JP Morgan banker actually found a clients wallet that was lost in his bank and stole the money. He then used the credit card from the lost wallet. Wow, you can’t make this up. And you put your money with these people. You trust your kids money with these people.
But the most important point in the article is in the last paragraph:
“On modern-day Wall Street, there’s lots of what they call cross-selling: the guy at the bank is trying to sell you insurance and stocks; the gal at the brokerage firm is trying to get you to buy annuities and open a bank account at their affiliate.
So — be careful out there. When you walk by Citigroup, JP Morgan Chase, Wells Fargo, Bank of America, Morgan Stanley, what you see may not always be what you get. There are lots of strings and entanglements. Your stockbroker may be dipping into your bank accounts, and your banking playing around in your brokerage account — and, at times, no one seems to have a clue.”
Mr. Singer is absolutely right! I have told you on this blog before that your friendly neighborhood stock broker is not your friend. They charge you fees that you don’t even know about. They charge you commissions that are 10 times the industry standard. And some of them are illegally stealing your money without you even knowing out of your account. But yet you still put your money with these people, don’t you?
But why?
Consider this: These people get paid regardless of whether your account goes up or down. On the other hand, hedge funds only get paid if they make you money.
Think about that. Think about how those incentives differ.
Also, consider this: Stockbrokers are usually C students from mediocre schools, who have zero experience trading or doing real economic or equity research. They are salespeople … bottom line.
I know personally one of the highest producing stock brokers in the country. He works for Merrill Lynch and he/she has an associates degree from a community college. Do you think he/she could get a job at a fortune 500 company. The answer is no!!! But they can manage your precious retirement and kids money!!!
Think of good investing, like surgery. Would you want your brain surgeon to be a community college dropout? Or would you want a Harvard surgeon that has a proven record of achievement? I’m going with the latter.
The same approach should go with your money. Good investing, good money management takes work, skill, deep knowledge of finance, global economics, statistics and pschology … and a high level of integrity.
Perhaps most important though, the incentives have to be properly aligned to get the right outcome.
Stockbrokers charge as much as 5% in fees. Trust me on this. Many of these fees are hidden. That is $10,000 a year on a $200k account, regardless of whether you make money or not. And I guarantee you, most of them don’t know any more about investing than the average man on the street. Yet you still give them your money!
I charge you $299 a quarter and I let you piggyback off the world’s best and brightest Billionaire Hedge Fund Managers, people who graduated from Princeton, Yale, Harvard and Stanford. But here is the real difference, these people have become billionaires, not from skimming your account with fees, but from their own personal investing talents and trading. And guess what? I can tell you exactly what these genius ivy league billionaires are buying, so you get rich like them.
But no, you would rather get advice from a C student from a mediocre college who never made a dime trading or investing his own money. You don’t want to make triple digit returns and retire rich.. You want to make your friend, your stockbroker rich. Remember, he is sending his kids to college on your money! But your okay with that right?
So go ahead and be poor and have money siphoned out of your account by your “friendly neighborhood stockbroker.” You don’t want to know what the richest, smartest billionaire investors are buying at www.billionairesportfolio.com. No that would be too easy right? You would rather struggle, have your stockbroker and banker steal from you, and then blame the “crazy markets.”
As I have told you before I monitor the positions of all the major Billionaire Investors and Hedge Funds, and as I mentioned on this blog before back in February that the majority of these Billionaires were liquidating their positions in Gold, and in the Gold ETF ($GLD.)
Even the great George Soros, who is a huge Gold Bug, liquidated most of his Gold Positions late last year and in early January of 2013.
I personally have never been a fan of Gold, Gold does not pay a dividend and Gold over the last 50 years has averaged less than 2% annualized or less than a bank savings account.
But the important thing about this massive sell off in Gold is that everyone should have known this was coming, because the smart money, the billionaires tipped their hands by selling their Gold Positions early this year.. They were selling Gold, yet everyone was listening to the rhetoric about Gold being a safe haven currency, blah blah.. well now Gold has collapsed and people are sitting on huge losses. Not only realized and paper losses, but also opportunity cost losses and that is even more important.
So most Financial Planners, Stock Brokers and Investment Advisers had their clients in Gold, because lets be honest they all are sheep and they all practice group think, so all their clients have not only lost actual money on Gold this year, but they also did not have their money invested in stocks where they should have been invested, and that is the so called opportunity cost. Basically people who owned Gold this year are not only down 14% in their Gold ETF, but they are really down 25%, because they would have had their money in stocks and the stock market has increased by more than 11% this year alone.
So again if you own Gold or are thinking about buying Gold please read my partners blog post and Big Picture Piece on Gold, it could literally save your retirement.
Here is my post, where I told you the secrets of how traders at hedge fund make billions of dollars using a secret trading strategy called the stock replacement strategy. This secret stock replacement strategy uses deep in the money options to replace buying the stock. I told you that this strategy will make you buckets of money and it did.
on this blog where I told you to buy Sprint May Call Options, that were deep in the money, and that you should buy the Sprint ($S) May $6 call options for just$.20 cents, because these options were trading almmost flat with Sprint Stock, meaning the option and the stock move almost one for one with each other.
So i wake up this morning and on the front cover of every newspaper and financial website is the news that Dish Network offers to acquire Sprint for a huge premium, Sprint is currently trading at $7.24 and the May Call Options I told you to buy are now trading at $1.33, up an incredible 560% from where I told you to buy them in my previous blog post.
Folks I told you to buy these Sprint May Call Options at $.20 cents, less than a month later these same sprint options are now up more than 560% to a $1.33 are you kidding me!!!. That means even if you only purchased 10 calls for just $200, you would now have over $1300 dollars in your bank account, that means I made you a $1100 off an initial investment of $200.
Even better some people wrote me that they had purchased 50 Sprint May call options for a $1000 and now they have over $65oo in their bank account. Enough to take their family on a fantastic summer trip to Europe, to NYC or the Hamptons. Why because I made them over $5500 in profits in less than a month.
And how did I know to buy Sprint May Call Options, first like I always told you I use my contacts and on Wall Street and at Hedge Funds to monitor what Billionaire Hedge Funds and Investors are buying, (thats why its called the Billionaires Portfolio) and they were buying tons of Sprint Stock, and secondly and just as important I have stressed the importance of great chart patterns and Sprint had just broken out of a long sideways consolidation pattern called a upside rectangle chart pattern, which 99% of the time predicts a big movement in the stock… why?
Because when a stock consolidates for months volatilty drops and the options get cheaper,, aka. sprint which had deep in the money call options for just .$20 cents, and volatility always reverts to the mean, meaning I knew that since volatility had been so low in Sprint, volatility had to go up.. and it did big time, with Sprint being acquired by Dish Networks today for a huge premium.
Folks its a simple formula, you use my secret stock options replacement strategy, you find great chart patterns and you find out what the Billionaire Investors and Hedge Funds are buying and then you become a millionaire…
p.s. thank you for all your emails, I have recieved 100’s and 100s and I really appreciate it keep them coming at wmeade@purealpharesearch.com and I promise I will try and answer every one it will just take me some time. Also I would love to hear from you if you made money buying the Sprint May Call Options that I told you about on this blog last month at wmeade@purealpharesearch.com
I have written a lot lately on this blog about my secret stock replacement strategy. I want to expand on this technique by showing you how I have made $1000 a day using this strategy. As you remember the secret stock replacement strategy is buying deep in the money call and put options to replace buying the actual stock. The advantage of using options is that gives you free juiced leverage 10 to 20 times, with limited downside and low capital requirements (you only have to put 1/10 or 1/20 of the amount compared to buying the actual stock).
And this secret stock replacement strategy allows you to trade with an account as little as $5000 to make a $1000 a day swing trading and day trading stocks.
This honestly is one of the most exciting methods I have ever found to make a living trading in the market, I have personally made on several occasions $2000 or more in a day using this technique and at the time I was only trading a $5000 account!!!
The key to this strategy is to find highly volatile, liquid stocks that have options with high trading volume so that you have a very small spread when you buy the option. What this means is when you are day trading or swing trading stock options, you only want to buy puts and calls that have very tight spreads, (the spread is the difference between the bid and ask). You want the spread to be pennies.
Next, you need to understand that in the short term (anywhere from 1 to 5 days) price action, money flows and technicals drive 95% of the stock price in the short term. So you need to know what chart patterns work in the short term and luckily there are a few great ones that work almost all of the time.
Lastly, you need to use my secret stock replacement technique, that is only buy options that are deep deep in the money, so that the option moves almost one for one with the stock.
So to use this secret stock replacement tecnique of day trading swing trading options you need the follow these rules every time:
1) Only trade stocks that have options that are very liquid with high volume, so that you when you buy the put or call the spread is very low, (it should be pennies) so that you are not paying a big premium on every trade.
2) Only trade volatile stocks with great short term chart patterns. Like the one I found in Coach ($COH).
3) And most importantly, you want to use my secret stock replacement strategy of only buying deep in the money calls and puts, in which the options moves almost one for one with the stock.
With today’s break below the key 1522 level, gold is highly vulnerable to a very ugly unwind. Everyone from mom-and-pop to hedge funds have loaded up on gold on the theory that Fed policy was destroying the dollar. It didn’t happen. Then the “death of fiat money” theorists underpinned further legs of strength in gold. In the end the predictions of imminent hyper inflation were dead wrong. Will inflation come? Sure. Anytime soon? Highly unlikely. Still, six years into the crisis, central banks are pushing on a string, with a continued threat of deflation. What was underestimated? It’s a global balance sheet driven recession/depression/slowdown (take your pick). All of the efforts to reignite credit via various monetary policy mechanisms don’t work when consumers, corporates and sovereigns are all austerity focused.
So for the masses that own gold at 1500, 1700 … even 1900 bucks still have no evidence to support their positions – yet, the gold longs have been rather arrogant, showing little fear of the downside risk. Their reckless message: Every portfolio has to own gold (as an inflation hedge). Meanwhile, they may be risking a fall back to $1,100 or lower. Keep in mind, that’s losing 40% of the value of your money (potentially quickly, if you are familiar with the way gold can move) … all in an effort to protect against an inflation rate that can’t muster 2% per annum in most of the developed world.
Given the massive and widespread position in gold, watch for margin calls, forced liquidations, hedge fund failures and perhaps we get a true stress-test of the loved ETF instruments (can GLD, the world’s second biggest ETF withstand a mass exodus?).
Bryan Rich
Bryan Rich began his trading career with a $600 million family office hedge fund in London. Later, he was a senior trader for a $750 million leading global hedge fund in South Florida. There, he helped manage and trade a multi-billion dollar foreign exchange options portfolio. Today, Bryan runs Logic Fund Management, a currency and macro research, advisory, consulting and money management firm. He is also the founder of FXTraderProfessional.com and co-founder of BillionairesPortfolio.com.
North Korea could be launching a nuclear attack and the stock market is making all time highs, investing has never been more difficult than right now.
So when things get confusing I like to look at what the “smart billionaire money” is doing, and they are doing a lot right now.
Through my extensive analysis of the world’s best Billionaire Investors and Hedge Fund Managers I know what the smart money is doing.
They are buying certain assets and selling a lot of another. They are buying certain sectors and selling 100% of other sectors. So how do you find out what the world’s best billionaire investors and hedge fund are doing? You subscribe to The Billionaires Portfolio, https://www.fxtraderprofessional.com/order/billionaireport/
We just issued one of our most exciting stock picks today to our subscribers in which we are following one of the top billionaire hedge fund managers into a deeply undervalued stock that could easily double in the next couple of months.
Furthermore we just sold one of our positions that netted our subscribers over 90% gains in 5 months.
I promise you that your stock broker, or mutual fund is not worrying about North Korea, or about what the smart money is doing, they are too busy playing golf or watching the Masters, not me I spend 12 hours a day pouring over SEC filings and calling my contacts on Wall Street and in the hedge fund industry to make money for you and to protect you!!!
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I have been very pleased with the amount of feedback I have received from readers of this blog, and I thank you for all your comments. One of the things that I have noticed from the hundreds of emails I have received is that people want creative and lucrative ways to trade stocks, ETFs, commodities and options, so I am going to list some of the secrets that I have learned in my 14 years ofworking in the hedge fund industry as both a trader and an analyst.
1) How to trade commodities, and commodity futures – I use pattern recognition only. Pattern recognition is using past historical patterns which have been back tested over huge data sets (a million or more units of data) to find recurring patterns that have profitably predicted price direction. My favorite patterns in commodities use both momentum and mean reversion. My average holding period is usually 1 to 3 days, and these profitable historical patterns occur almost daily in one of the 20 or so commodity markets.
One of my favorites patterns is based on volatility reversion, this pattern begins when a commodity market makes a strong move in one direction then pauses and consolidates, volatility drops, and then you buy when price breaks out again. Right now this pattern is occurring in the gold and silver markets. One way retail investors can trade this is through the use of leveraged inverse etfs from proshares, proshares has 2x short silver and 2x short gold etfs, and these ETFs are just as powerful as the actual commodity futures.
2) Options, this is the real secret way traders at hedge funds make huge returns. Flat out options can make you rich!! I have seen many traders including myself that have turned a $10,000 account into $100,000 very quickly trading options. Some of the secret techniques that I use to trade options are: the secret stock replacement strategy, strangles, penny options and synthetic calls. These secret option techniques not only produce huge returns but protect you against market downturns as well.
3) ETFs– I trade ETFs using leveraged ETFs but again the best most lucrative way to trade ETFs is to use ETF options. Again I have seen people make $10,000 and $20,000 dollars in a week trading ETF options on Gold ($GLD), silver ($SLV), natural gas ($UNG) and volatility ($VXX) just to name a few.
4) Stocks- this is by far the most safest and most lucrative way to become a millionaire. Stock are the place where you should have the bulk of your personal assets in. The reason there is no better risk reward than stocks, especially when you use my “follow the billionaires money” technique which allows you to follow the worlds best billionaire investors and hedge funds. These stock can produce 100% and 200% returns but also have limited downside, meaning you can feel safe and sleep at night with this technique. To find out more about this strategy check out www.billionairesportfolio.com
If you want to learn more about the secrets that billionaire hedge fund traders use to make 100% 500% even 1000% returns than please visit www.billionairesportfolio.com.
Classic Bull Flag Pattern in the online gaming stock Zynga (ZNGA), the flag pole projects that this stock should go to over $6 in the next 3 to 4 months. I think this is very likely since Zynga has a lot of potential catalysts to push the stock higher including they a new game coming out, and the company’s entrance into the potentially lucrative online poker market. More importantly Zynga is the perfect stock to play the technology sector since it has the combination of a high market cap ($2.5 Billion) and high trading volume (more than 30 million shares a day) combined with a low price at $3.45 and lots of volatility so that if the tech sector and the Nasdaq 100 keeps rising this stock should easily hit the $5 or $6 mark, producing a 50% to 75% return. Also Zynga has limited downside with almost zero debt and over $1.2Billion in cash, meaning half the company’s market cap is cash.
Today we witnessed a huge upside momentum day in the Nasdaq 100, this is an extremely bullish signal and should set the stage for another 5% to 10% move in the Nasdaq 100 and in technology stocks.
As I mentioned in my previous blog, a secret that I learned from my hedge fund days was when you want to play a hot sector, such as technology right now, you want to try and buy the cheapest most volatile stocks which will give you the biggest returns when that sector or group is trending up. Remember the old investing adadge, “A Rising Tide lifts all Boats” and that is especially true in the stock market and with stock sectors. When a sector is hot such as technology and internet stocks are today, every stock in that sector will move up in tandem with the Nasdaq 100 or with the technology group.
So instead of buying a boring ETF like the $QQQ or $XLT which might make you a 5% or 10% at most return, you want to play the hottest most liquid stock, (meaning a stock with high average volume so institutions can buy it) but also has a cheap stock price preferably under $5. This combination is absolutely deadly and when you find a stock that fit this criteria in a hot sector you have to jump all over it. I found just the stock and even better it has one of the best chart patterns I have ever seen, a bullish flag pattern.
This stock which sells for less than $5 but trades more than 20 million shares a day is a technology stock and has quite possibly the most bullish chart I have seen, since it has completed a classic flag formation, probably the most powerful bullish chart pattern in the world. A flag formation is very rare and occurs only after a stock has moved up a minimum of 75% to 100% in price within a short period of time and then consolidates and then breaks out again. The great thing about the flag chart pattern is that it produces more triple digit winners than any other chart pattern I have ever seen.
To get a copy of this annotated chart with the flag pattern drawn in and the name of the stock that I am talking about please email me at
wmeade@purealpharesearch.com . I promise you don’t want to miss this one, this stock has very little downside, since it has tons of cash and zero debt yet could easily double in price over the next 3 months.
Will Meade
Editor of the Billionaires Portfolio
www.billionairesportfolio.com
wmeade@purealpharesearch.com
