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May 6, 2011

Dodging the Silver Bullet

Over a month has passed since my last public post, and I offer apologies. April was quite a fantastic month from both a trading and personal standpoint, and I was simply too occupied to make time to write for anything other the Member letter. With regard to trading, the silver positions I had built-up from January into the March cycle resulted in several of the best monthly performances of my trading career. In fact, my performance in the three years since I left the Citi trading desk... and specifically over the last 9 months... afforded me the opportunity to meet a sharp group of money managers here in Atlanta with whom I have formed an investment partnership... more affectionally known to the world as a hedge fund... focused on capitalizing on the commodity markets. We anticipate placing our first trade by the end of the month.

Just to give folks an update on the last month of trading, the Docfolio saw its silver position greatly reduced in mid-April as the scale of the rally, along with extreme sentiment readings, made the trade seem increasingly risky. I scaled out of a large portion of my book in the vicinity of $42, and kept scaling out up to $48. At that time, I switched focus to the gold trade based on some comparisons to the 2006 parabolic run, as described in recent Member letters.

While my book is much reduced and, thankfully, focused on gold rather than silver, the Docfolio is suffering some drawdown in early May. Rather than rehash charts and strategy here, I will simply share the most recent Member letter. Enjoy...

May 5, 2001 Member Letter


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