Due to the incredible success and strong performanc of our Billionaires Portfolio. I will be rolling a super exciting new premium Service called The Billionaires Options Trader. We plan on launching this super premium service in the next couple of weeks, and I am really pumped about it.
The opportunities in options trading right now are incredible for many reasons. First off, in my 14 years of workinng in the hedge fund industy I have never seen so many Billionaire Hedge Fund Investors using options as they are today. I know this from my sources at Hedge Funds and from many interviews I have conducted with Hedge Fund Managers recently.
Why are Billionaire Investors and Hedge Funds buying so many outright calls and puts options, well its quite simple.
1) Volatlity is at a 15 year low, It has never been cheaper to buy calls and puts then it is today.
2) Hedge Fund Managers are finding it very expensive to short stocks, not only because the borrowing costs and margin interest is high (as much as 5% annualized) but, its also hard to find the actual shares to short. When you buy a put option you have no interest or financing cost and you are never at risk of a short squeeze.
3) Most Importantly – Huge returns, Billionaire Hedge Funds are now embracing the idea of buying calls and puts because the returns can be so big, were talking 500% 100% etc…
4) The Invention of the Mini Options, in the next three weeks the CBOE will be launching mini options on the most High Priced Stocks such as Apple ($AAPL), Google($GOOG), and Priceline ($PCLN). The Mini Option will let the option user control 10 shares of stock, instead of a 100 which a regular option controls. This will make mini options much cheaper to buy, it will allow the individual investor to buy options on Apple($AAPL) for as cheap as $100 per contract.
So please stay tuned to this blog, as I will obviously give you an exact date when we launch this service.
As I posted last week, some of the top hedge funds in the world including Stephen Mandel of Lone Pine Capital had purchased millions of shares of Dollar Tree (DLTR), Mandel’s fund owns more than 5%, and just like clock work, Dollar Tree came out with great earnings and positive guidance, and the stock jumped more than 11% yesterday. Yes there still is time to ride the train on Dollar Tree (DLTR) because it will probably go up another 10% or more to $50 in the next couple of weeks, because of a financial theory called “Earnings Drift” But my point is there is no better way to make money then following the worlds best billionaires hedge fund managers like Stephen Mandel.
Put it this way Mandel is considered the best retail-consumer analyst on wall street, he is worth billions of dollars because he is so good at picking retail stocks, so when you see him taking a huge position in a retail stock follow him, and I promise you will make money.
Another interesting note is that Mandel has a huge short position on a major retailer, and is he using big leverage to do this by using puts, to find out what retailer the billionaire Stephen Mandel is buying millions of dollars of puts on and how you can piggyback him in these put options go to www.billionairesportfolio.com and subscribe to our service, this trade is going to be huge, I promise, and it could potentially be a 1000% winner, because we are using options.
Take a look at the chart of Herbalife ($HLF) today it has completed a descending triangle bearish breakdown, if this is true Herbalife could go back to the $26 levels, meaning the Billionaire Bill Ackman would win his battle with Carl Icahn, as he is short Herbalife ($HLF) at prices around $44. That would generate more than a 40% return on Ackman’s short position.
Bloomberg news just reported that Hedge Funds cuts their bets on Gold ($GLD) , and became the most bearish on agricultural commodities since 2007 such as sugar and coffee.
Hedge Funds are spooked that the Federal Reserve will slow the U.S. stimulus programs that have artificially raised prices for raw materials.
Please don’t get caught up trying to buy a dip in Gold ($GLD) or any other commodities, countless Academic research has proven that hedge funds inflows and outflows into commodities tracked by the Commitment of Traders Report have predicted major price moves. Money flows are very important and the “smart money is all out dumping Gold ($GLD) Silver ($SLV) and agricultural commodities ($DBA).
So how do you take advantage of the impending huge decline in commodities, through my Billionaire’s Portfolio, where I show you how to use leveraged ETF’s to take short positions that can make 100%.
Ralph Whitworth, the Billionaire Hedge Fund Manager who runs Relational Investors, disclosed last night that his fund now owns an 8.76% stake in SPX Corp. (SPW).
Relational said in a statement ““Despite the company’s attractive business mix, total shareholder returns and profitability have lagged peers’ due primarily to excessive prices paid for acquisitions”
Whitworth has urged SPX Corp. to sell assets and hone its acquisition strategy.
SPX corp ($SPW) produces industrial equipment for a variety of industries, and has been actively pursuing acquisitions.
Zynga ($ZNGA) is up more than 15% in the last two days in a flat market. This is a classic Billionaires stock, it is basically a call option with zero downside. Zynga has zero debt and $1.67 in cash per share. The stock traded for almost its cash position at $2 just over three month ago.
Now there are rumors that Zynga is going to be a big player in the online gambling market. Better yet one of the world’s best Billionaire Hedge Funds Tiger Consumer puchased millions of shares of Zynga last quarter, and is now up more than 50% on their position.
So as every retail investor trys to pick and a bottom in Apple ($AAPL), (and is getting burned every time), instead you could have been making a low risk 50% return on Zynga.
How?
Well just go to http://www.billionairesportfolio.com and sign up for our free text alerts, which will alert you whenever a Billionaire Investor or Hedge Fund buys a significant chunk of any stock under $5.
As everyone knows I have been warning people about trying to bottom fish on Apple ($AAPL), too many people have lost their hard earned money trying to bottom tick this stock.
Regardless of David Einhorn’s lawsuit, Apple is not a buy until it breaks the downward trend channel it is in..
Bottom Line. How many analysts from Gene Munster to Goldman Sachs have told you to buy Apple ($AAPL) that technical analysis or momentum doesn’t matter, yet the stock continues to tick down. I promise you none of the Billionaires Investors I follow are buying or have purchased Apple, almost all of them sold Apple last quarter. This stock is not going to magically go up and more importantly you are missing other opportunities in the market. My service the Billionaires Portfolio has produced two stocks that have gained a 100% or more.
As everyone knows my goal in starting the Billionaires Portfolio, is to empower and educate the everyday investor on the investment strategies and techniques that Billionaire Investors and Hedge Funds use to generate huge eye popping returns in the markets. Remember the Billionaires I am talking about are self made Billionaires, they are investors who have compounded their money at 30% to 35% a year.
Think about it this way, the average 401k or retirement account today is $80,000 according to Fidelity, $80,000 compounded at 35% a year for 20 years is $32 million dollars, am amazing amount. You will never get even a 15% annual return from investing in mutual funds, so there is no point in putting your hard earned money in mutual funds, its an industry based on mediocrity. The top 5 biggest funds that manage a combined $100 billion dollars in stocks, averaged 7.5% a year over the last 10 years, an incredibly mediocre return.
So how do you return 30% to 35% a year, and how does the everyday person become a Billionaire? I have studied Billionaires and their investing habits for over 10 years and here are some secrets that I have found:
1) Billionaires and people who have become self made Billionaires never ever, let me repeat this again, never ever invested their money in mutual funds.
2) Billionaires use Leverage, it was just discovered by the genius Hedge Fund Firm AQR that 99% of Warren Buffett’s return has come from his use of leverage, his stock portfolio was leveraged 160% or 1.6 times. Buffett learned that you must take risk to get rich.
3) Billionaires make concentrated bets, when they feel that have an edge or their is a great trade, they bet big, that is why I only follow Billionaire Investors and Hedge Funds who buy 5% or more of a company.
4) Billionaires make money in a variety of ways, stocks, commodities, and going short, So how does the every day investor do this? through leveraged ETFs. Leveraged ETFs offer the cheapest leverage in the world a borrowing cost of 1% I can leverage my money by 300% using leveraged ETFs, if I tried this through a brokerage firm or a bank they would charge me 6% to get that type of leverage.
If you subscribe to my Billionaires Portfolio, not only will I tell you about the most lucrative stocks that the worlds best Billionaire Investors and Hedge Funds are buying, but I will also tell you when to buy these stocks, based on over 10 years of backtesting, and how much to buy. Also I will tell you all the secrets that I have learned from studying Billionaires and their investing habits.
Oh and by the way my service The Billionaires Portfolio has returned 16% in less than 6 months, that’s a 35% annualized return, right in line with the Billionaire Investors I follow.
To subscribe to the Billionaires Portfolio just click here https://www.fxtraderprofessional.com/order/billionaireport/,it takes less than 2 minutes to subscribe.
This is just one of a 100 examples of why you should be piggybacking Billionaire Investor’s stock picks. Just look at this chart of Netflix (NFLX), Carl Icahn the legendary Billionaire Activist purchased almost 10% of this stock at $60 a share. If you would have subscribed to our Billionaires Portfolio text alerts you would have been able to buy Netflix (NFLX) at almost the same price as Icahn around $65 a share. Today Netflix (NFLX) sells for $180 a share, a more than 150% return in less than 4 months. Not to mention option traders would have pocketed more than a 1000% on Netflix.
2/24/2013
Every week I run a screen to find the stocks that the best Billionaire Investors and Hedge Fund Managers are down the most on. While running my scan this weekend I came across Apollo Group (APOL), which is near its 52 week low, and is almost 50% below where Billionaire Investor Donald Yacktman payed for this stock in the summer of 2012.
Donald Yacktman, of Yacktman Asset Management runs a $17 Billion asset management firm, he has the best track record of any long only manager over the last 10 years. Mr Yacktman doubled his stake in this stock last summer at prices almost 50% above today. He currently owns 6.6% of Apollo Group (APOL).
