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Subject:  YONG: Fund management issues Date:  5/22/2012  1:20 PM
Author:  anuragupta Number:  5024 of 5166

I was tickled to read Tim's epic voyage fund selling "the losing position" in YONG. Tim had pitched debates with me on the board over not have "material evidence" against YONG. And that situation still exists. So why sell?

Bill Mann did the same with MPEL. Sold it from the fund and the stock recovered in style playing on the original thesis.

At HG, from the posts, one could gather that Seth had more than 10% of CMG in his personal portfolio prior to its quadrupling. At HG portfolio, its allocation was 3%. I wonder what he did with his personal position. Did he sell partially or keep it all? HG kept it at hold for 2 years over a price range of 100-400. Never discussed the basis of hold. With each quarterly report, the valuation models kept getting updated.

I showed at the MDP board how if MDP had held on to its positions at the market's darkest hour in March 2009, the portfolio would have been $1.5M. They left $500K on the table on valuation models.

Why so much variance in newsletter management, personal finance management and portfolio/fund management?

All TMF portfolio and funds that I have seen so far can be beaten with dollar cost averaging with just SPY and VWO. They can be smashed with opportunistic cash allocation that involves buying more when they are trading much below historic mean.

My takeaway is that people who run newsletters are basically stock pickers and good analysts. Whether or not they can make money in their personal portfolio or with someone else's money based on the thesis they laid out is another story.

Here is to hoping that Nathan sets the first successful example of portfolio management.

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