Good afternoon,
On a positive note, not that many celebrities died mysteriously this week. The above music video is a tribute to one of the fallen who was treated unfairly this time around. Attached is this week’s performance for the Long Short portfolio. I mispriced the tenor put risk on the most overvalued securities and the portfolio underperformed expectations. I will take responsibility for that, as well as for not reviewing the 100 companies’ financials to ensure no material information was released that would affect their valuations.
I noticed the mispriced option risk while analyzing the new duration of option contracts that were written this week, and I will work to fix my equations and rotate into the longer duration contracts if I can achieve more value from them.
Accurately forecasting the market decline, but being unable to capitalize on it, is not acceptable performance. I will work to fix it. I did not make this mistake with client funds, but it is unacceptable non the less. It is like Corey Booker receiving 100 million dollars to educate the children of Newark, essentially stealing it along with their future, and acting like a tough guy instead of being one and admitting it.
Warmest Regards,
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