At quarter end, I loaded up on some of the more hilarious Ponzi Schemes that modern finance has created. They were the sort of Ponzis that would make a PM blush on a due diligence call. At the time, I suspected that quarter-end would lead to a short-term respite from the selling. Like clockwork, the selling ended and my basket of Ponzis spent the better part of last week levitating for some surprising percentage gains. Event-Driven often works like that. You play the odds and frequently get paid if disciplined. The key is staying disciplined.
Q2 2022 hedge fund letters, conferences and more
Today I showed up to the machine and the Ponzis were rolling hard. As a result, I decided to toss them for a nice gain, though down materially from the peak levels late last week. All the same, many of these names were up substantially in percentage terms. I’m happy to take the quick win and move on.
I suspect that these names continue to grind higher during the summer, but on Friday, I leave for vacation in Europe. We’re thinking to hit Switzerland, Northern Italy, Spain and Denmark. I know, it’s an eclectic itinerary, but that’s how we keep it interesting. In any case, I don’t want to be managing Ponzis while on the road. I feel strongly that holidays should be about clearing the mind and you cannot hike the Alps while checking your quotes. I’m taking the solid win and de-grossing down to just my core book until I’m back in September.
If you’re in any of those countries and would like to meet up, please email me at kuppy@adventuresincapitalism.com Local color always makes a trip more interesting and I’m up for buying beers for new friends.
It’s been a pretty crazy first half of 2022. The second half is going to be intense, I just feel it. A bear market like we’ve been experiencing will need a wild finale. It cannot end with a whimper. It’s now or never if I want to grab a few weeks of vacation, as I want to be fresh in September. I recommend that you all do the same. Nothing good comes of summer trading. Trust me…
