Investing for Profit and Joy and Beating the S&P

I have been managing money in a hedge fund for 18 years. This month I decided to wind that part of my business down. I have had a great run. I easily beat the S&P over this period. My partners have been fantastic, but they don’t really care. I don’t blame them.

Since all my limited partners are friends, not institutions, I called them to let them know before I wrote. The Canadian ones have long blessed me for getting them out of Canadian dollars. It’s probably a great time to take those dollars back. I know this because they don’t want them!

I was telling one of my oldest friends Jono about it over breakfast in Scottsdale last week. 

Jono was employee number 1 at Lindzon Capital. He’s also been a limited partner for the full 18 years. He did all the client paperwork and backend and now runs a hugely successful ASI business. He endured endless tirades based on my mood which back in 1998 was way too tied to the market. It’s really a great business and an awful lifestyle (for me).

As of March 2016, I am all in on ‘Investing for Profit and Joy’. That includes running StockTwits which gives me endless joy,  investing in seed stage companies through Social Leverage and publishing (like this blog). 

I have no joy left in trying to beat the S&P, the great traders and the robots …with other people’s money. 

I am very bullish on the financial advice and financial content business. I am not sure on how to price it or package it but I am convinced that robots are not the only answer. I am leaning on the pendulum swinging back more in favor of pay for advice as the price of transacting drops to zero. I spend my day talking to fantastic traders and investors that think the same. It’s fulfilling. I believe in paid mentorship which in any other line of business would be called coaching. 

My hedge fund is not big enough to read anything into the timing. I was not loving stocks the last 12 months and the stocks of companies I do love can be purchased commission free on Robinhood. My idea of buying stocks of the companies that appeal to ages 8-80 is not complicated.

I share my ideas in real time so nothing really changes except for my pay. I have some funny stories I will share about the early days of running the business. I can’t wait to start telling them now here.