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Dennis Gartman Seeking To Raise $200 Million For Hedge Fund
Commodity bull Dennis Gartman has decided it is time to collect a little 2 and 20 luvin' presumably a more lucrative venture than reaping the benefits of newsletter subscriptions. Hopefully the fund, if it ever launches will be a little more diversified than just a couple of thousand BOEs. To observe the effects of a lack of diversification, one only needs to observe the performance of Ackman's Target fund.
From Bloomberg:
The fund is currently long soybeans and short wheat and
long gold and short the euro, he said. “It’s something I’ve wanted to do for a long period of
time,” he said.
We wish Dennis the best of luck, especially with his long gold position. Then again we doubt he will need it, because as he says, " the
hedge-fund industry has probably bottomed since the slumping
economy last year eroded asset values and forced many funds to
close." Then again, wanton hedge fund creation has rarely if ever been seen indicative of a market top.
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Who is next? Insana, Gartman, Kneele?
Remember Insana has already been there done that. Was at SAC then blew up
The Dennis Kneele Recession is Over Fund.
Clusterstock did a post about former reporters turned businessmen
http://www.businessinsider.com/journalists-turned-businessmen
0.38 pct move in currencies is not nothing... and i'm glad to know that only the "scarcastic shorts" have been pummeled
good articles; my newest bookmarked finance site ..http://www..
hat tip: finance news & finance opinions
Kneale!!! Hahahhahahaha!! Just got my laughter for the afternoon, thanks dude.
Jim Cramer, former Principal of Hedge Funds, indirect if legally barred not a problem HE IS A HEDGE FUND ALREADY - disguised, not held to Law, not accountable...where is the Company Andorra? http://www.google.com/search?hl=en&source=hp&q=jim+cramer+wiki&aq=4&oq=j...
This guy probably wants to leverage up via S&P futures. He knows the gov't got his back.
I don't know how anybody who says he wants to be "long of" this and "short of" that could know what he is doing.
there is no doubt in my mind that dennis' writing style and wide-selection of topics and sources are what hook readers. his calls and methodologies may not be those, with which everyone would agree... but his history in the game is certainly lengthy.
from one daily reader, i hope the newsletters continue in their usual, entertaining format... and best of luck with the new venture.
Ackman's Target fund was a stalking horse to allow him to trample the company while he shorted it in other hedge funds.
Feh.
Hope he disclosed that to the investors who lost 90% in that "complex" option play.
Not really a "hedge" fund if you lose 90%.
Hedge funds seem to be "play with other peoples money" and see what happens.
Kind of reminds me of the old broker who cold called prospects with the "listen, you don't have to invest now, but just track my advice over the next few trades, and if I am right, you will be able to see how much money we make". The broker would tell half to buy, half to short a stock. He would repeat this a few times, luring in suckers as he was "right". He would also go back to the losing trades and ask to give another try.
thanks made my day, but of course, the clock stopped is right twice a day methodology,
application of the law of Large Numbers, and sucker-parasites who deserve it anyway
I have a bad feeling on commodities. Sure medium term, long term fine, but next 12 months or so, I'm not so sure. Everybody and their aunt is bullish commodities, citing China and an economic recovery in the West as reasons. What price commodities if China rolls over post stimulous, and the recovery in the West is L shaped? In my view there is little, if any, demand growth coming from the West, so this whole commodity story is pinned up on the bank of China!
Black Rock came to market in March 2007, just before all hell broke loose!
Let's wait and see. It's much harder to equivicate with performance figures than it is with his sentiment in each recurring letter. If you only hear him once, it appears he has some consistent ideas., but if you listen to him consistently for several days, he sounds like a CNBC 'Fast Money' trader.
Talking about Commodities... has anyone seen the nice high 2 handle on Natural Gas. Could we be looking at a return to the early 90's price of low 2's? Damn thing lost 5% today.
As for Gartman, well good luck to him I suppose.
I guess cash for clunkers scuppered Boone Pickens plan to convert vechicles to nat gas lol!
Damn $2 handle, gosh I was investing at $6-8. Oh well that's one for the duff portfolio, well until the next major hurricane hits the Gulf that is.
Russia is long gas in the Stans in the 8's...guess who's playing Opec with their price crash and buying up the weak hands like the over-leveraged and totally correct about the truth like Aubrey McClendon. When the thinking gets to natty, they talk global warming as if coal was an equivalent ....like the drug war on natural substances in favor of the rare 50K per year per course of treatment miracles that make the ordinary river of toxic synthetics right.
What's the BTU differential now between oil at $73 and Nat Gas at $2.92? It must be stunningly in favour of Nat Gas.
You may be asking a different question, but if you multiply natty by 6 you get a good approximation of BOE.
Logic and value mean squat..Foreign sourcing is the key. Follow the money out of the Country...It is there to be stolen, turned into missles for peace and prosperity for the dealers..Domestic natty gas don't play that. The fix is in. Boone's got nothing but the truth, and he takes it like a man. Too bad about Mr. Gartman; if he knew he wouldn't be talking, 'cause sense don't make dollars.
The spread between oil and gas is amazingly wide.
one barrel of oil gets you a whole hell of a lot of gas. id sell oil and by gas here.
Nat gas new low from the July 09 low by about 12% today.
UNG (the nat gas EFT) is even with the last low in July.
WAY TO GO EFT!!! YOU TRACK THAT COMMODITY REAL TIGHT ONLY OFF BY 12% OR SO. KEEP UP THE GOOD WORK!
cash on Tuesday in anticipation of a liquidation event between now and the Fall its always good to have cash on hand
good articles; my newest bookmarked finance site ..http://www..
hat tip: finance news & finance opinions
Aren't the euro and the dollar, like, usually inverse to eachother?
Which would make Dennis, like, long the dollar.
Which would mean gold and the dollar,like, move together.
Where is Jim Sinclair, like, when you need him?
Nice post. With all the "likes" in there, you sound like some of the NYU tramps that are fair-game around the city.
More like sluts. I should know, I dated one before she moved to NYC and went to NYU in her early 20s.
dolalr short equity trade alive and well. if andy xie is right (not saying he is), about fed moving to nudge up rates but brehind the curve on purpose for the mtipornged effect of signaling to the market its inflation fighting credentials and perhaps give dollar a lift, what does it mean for equities. The correlation between rising rates and equities inflected in 1998 with the relationship moving to a near ~1:1. During the 80s more like a negative -1. Can equities perform in a rising rate environement like the 89 plus period -- is it even concievable
Gartmann is a good man.
Hedge funds are mutual funds for stupid rich people. Go get 'em, Gartman!
So commodities must have topped. Time to short oil maybe.
This will be interesting to watch
good articles; my newest bookmarked finance site ..http://www..
hat tip: finance news & finance opinions
Managed futures was doing great last year, but is struggling this year based on indices (which are B.S. to begin with, but that's another discussion). ZH, can you advertise my CTA while your at it? We're launching a new program too. Thanks in advance.
The first lesson that Dennis is going to learn is to NEVER disclose fund positions.
Gartman has already stated that he's not going to disclose positions/recommendations in his newsletter anymore.
Dr Copper is feeling a bit ill right now. Not the time to get feverish about commodities.
Gold is not a commodity. Is is a currency. Any alternative view of Gold is uninformed.
why sure it is, it is even coined, and i think you can even write enforceable civil contracts in gold-terms these days. Can not pay your US taxes with it, by law, then why would you? there is just this 'problem' that comes about, NOT a conspiracy, but acknowledgement of FACT, simple FACT that the whatever it is 150,000 metric tonnes of above ground gold total in existence ain't shit - NOTHING at all totally inadequate as a tool of finance, as a store of value -
in the long run we are all dead - Keynes - you can have your 'horded gold' and die with it,
money is not CAPITAL, thats factories, production stuff, the stuff that allows 6 billion people to live, trive in some cases, on a planet that in the 'hunter-gather-mode' could but support maybe 10 million at the margin, under the best of conditions, or 100 million if hydralic-agricultural mode..
i'm not gonna do the math, thats YOUR homework, you just go ahead and figure at $1000 per what the total is,=> nothing,
we have alone, a small part of world financial monetary representatiion $40 trillion in deflault insured debt/credit mostly for bono-fide world trade
Gold - buy you dream, take delivery, its there, come to me for trade and i will take it, right out your hands, with the help of a Barrett 50 caliber with sniper day/night scope - Fool !
post script,
so, you see, at that SAME moment that GOLD is the only remaining store of value, my 50 caliber with a stash of tungsten-carbide tips bullets will THEN be worth, somewhat MORE per fine oz than gold -
am i communicating NOW?
no, sorry i know YOU would already have a 50 cal, but at the point of trade,
i will have a 20mm cannon and a few rocket propelled grenades, and YES, you will GIVE me that physical Gold, why would i or anyone 'trade' nothing...
Gold is not a commodity. Is is a currency. Any alternative view of Gold is uninformed.
I have always wanted to start a hedge fund and want to announce that I will be looking to raise $50M. I am long hookers, blow and Vegas real estate. I am short bribery and graft with call options if I get into trouble. As always, usual disclaimers blah, blah...lose all your money blah, blah, blah.. Let's get this deal done!
sure, just put it in the required legal disclaimers, hell i'd buy in, who knows...afterall even the Great Isaac Newton himself bought into the "South Seas Island" scheme, which never made an honest penny
sounds like a kick ass fund; give me your account # and ill send you 10 mill.
You mean Gartman doesn't already trade? He's all 'i'm long this and short that' on cnbc. he certainly gives the impression he's running money.
Um...ok..."culminates in actual TRADING RECOMMENDATIONS"..that is exciting! but being able to 'weave the golden rules of trading thru the commentary...now that's priceless!
THE GARTMAN LETTER is unique because it culminates in actual trading recommendations. Undoubtedly, TGL's greatest strength is the way it weaves the Golden Rules of Trading through the daily commentary. TGL elevates its readers' thinking about the markets!
THE GARTMAN LETTER is a necessity in the trading room - like a trader's addiction. Its ideas consistently make money - not on every trade, but consistently, day in and day out - and that is the bottom line!
thank you, really good 'tradeable' information...
i mean NOW that i KNOW of a source of the necessity of the GARTMAN LETTER, its consistency day in and day out...
well guess i see WHOM to follow, in an adversary mode of course -
FOOL you once, fool you twice, and you just keep coming, like British soldiers in World War 1 'over the top, lads' charging the machine guns of Goldman Sachs,
FOOLS all, yet trapped in a losing PARADIGM - hence they 'have it coming' - i mean the 'giving, giving, giving...' unto me, the perceived Diogenes, Dog fool who even defeated Plato once on a face to face - sour Plato called him "Socrates gone mad..."
On July 13, 2009, the U.S. Court of Appeals for the Third Circuit affirmed a district court decision holding that Equity Financial Group – a “feeder fund” that invested in underlying funds that traded commodities, but that did not itself trade commodities – along with its president and sole shareholder and lawyer violated the Commodity Exchange Act (CEA) by failing to register as a commodity pool operator (CPO) and engaging in other fraudulent conduct. The case, which appears to be one of first impression, confirms a view long held by the Commodity Futures Trading Commission (CFTC): that investors in commodity markets are exposed to the same risk whether they invest directly or indirectly, and thus direct and indirect investors are entitled to the same degree of regulatory protection. See, e.g., “Michigan Couple Ordered to Pay More Than $3.1 Million for ‘Private Hedge Fund’ Fraud,” The Hedge Fund Law Report, Vol. 1, No. 9 (Apr. 29, 2008). For hedge fund managers, the decision’s impact may be mitigated by various exceptions from CPO registration that may be available to them; those exceptions are discussed more fully below. However, hedge funds that are required to register and elect not to take advantage of an exception or are not eligible for an exception are well advised to review the obligations that registration as a CPO entails. These obligations include, among others, disclosure, record keeping and operating requirements. See “Should Hedge Funds Register as Commodity Pool Operators?,” The Hedge Fund Law Report, Vol. 2, No. 26 (Jul. 2, 2009). This article details the factual background and legal analysis in the Equity Financial Group case; discusses exclusions and exemptions from CPO registration that generally are available to hedge fund managers; addresses whether managed accounts are a viable means of structuring around the holding in the Equity Financial Group case; and highlights various consequences of CPO registration.
well, now, thats PROGRESS, maybe even...ah yes, the court system, when hedges can fold....lets see the 'legal workarounds' will be probably ARE already in place...buyer beware ! still
His long gold position is probably in the ETF. Good luck collecting on that!
Also, anyone placing highly leveraged paper bets on the Euro (either direction) is going to get burned. There is going to be increasing volatility as the system comes unglued.
This is the one thing I'll never understand. For all the "gold is money, can't be debased, dollar is paper toilet" talk we hear from the inflationistas, how exactly do they intend to cash in on their GLD holdings if their doom scenario comes to fruition?
Funny shit will happen to paper gold if spot really goes through the roof.
Why, we shall use the Euro. Sorry couldn't help myself again. :-)
Ha ;-)
I have always wondered: do people even realize that the Euro has ZERO fiscal backing?
So choice is between the peseta, the original QE masters, the tax fraudsters and the 30%-of-my-GDP-is-banks. Suddenly the dollar doesn't look "that" bad.
Unless we have to take seriously the notion that a non-convertible, non-floating, non-deliverable currency is really going to take centre stage at any point in the near to mid term.
Gordon, posted a reply to your other post. To be very honest with you, most people on in the blogosphere and elsewhere are trying to predict the order of events which shall occur in the chaos that may result due to a serious bust in the financial world or otherwise, such as another major War, etc. It is practically not possible.
The only thing can be said is that the most liquid currency will win the battle, i.e. plain ol' Dollars. Demand for Dollars at that point in time will skyrocket instead of tanking. Other currencies are just not substitutable except for Swiss francs and Euros maybe, but not sure on that one. Most people have the luxury of speculating outcomes from the sidelines, but when the shit really hits the fan, things take on a new reality.
You're a wise, wise man.
All these doom scenarios are fine and dandy, but when and if they come to fruition, look for unintended consequences to rock your world of certainties. I mean, I can count on one hand the number of people I know who got the USGG10YR @ 2% trade right last year.
Gold is still the funniest one. As if the gov is going to let anyone cash in on 6000$ gold if that were to ever be the case. More likely the Schiffs of this world are going to be FDR'd, big time.
But then again, people are even more likely to sell all the silverware to pay down debt, so I don't even think we'll come close to facing this problem.
Oh and you can call me Alf.
Thank you Alf, you're too kind. Not that I need to blow my trumpet, but I got ridiculed last year for buying puts on AIG and shorting Sterling via Cable and GBP/JPY. Sure, as Andy says, I have been jimmied a few times, but who hasn't, that's the nature of the game.
The Weekly charts for the latter two were seriously screaming sell since July 2008 on a backdrop of the fundamental picture which had been simmering since mid-2007 due to the Northern Rock debacle and an incompetent Government run by Mr. Brown. Cable was ripe for short plucking since mid-August of 2008. People on the ground still had the euphoria that everything in the UK will be alright i.e. the best time to pack bags and head for the exit. Then went Bradford & Bingley... and then Dumfermlin Building Society, and the list goes on and on...
Ah well, such is life. Note this by the way, the Public Sector Net Borrowing number which was reported today as being a deficit of 8B GBP as opposed to a forecast of 0.3B GBP is EXCLUDING the cost of financial intervention and the various Bank of England operations carried out since last September. There is a fat green shoot for long Sterling, not.
Gents, shorting Oil and buying Nat. Gas is the common sense trade. However common sense is not making dollars right now, so as per Sherlock Holmes, whatever else is left must be the logical course of action...
... short Natural Gas to the low 2's handle.
Please don't follow up by calling me names, I am just making an observation here given that many people who even bothered with the "$4" is the cost price crap so it's heading up up and away from here crap.
natty is one of those trades where it is one big trap either way. either long or short the big fish will shake the shit out of you until you exit at the exact time when you should enter. reverse thought could give you and edge though. good idea.
Granted. In my view, doing anything but spreading Nat. Gas or Crude is like asking a very well endowed pornstar to rear-end you constantly with no remorse on his behalf. But then again, I don't trade Nat Gas outrights so I shall leave that to the machismos who do.
yes, common sense really NEVER made for the 'trade' whats new? but beware the Witch please, trade the BTU spread, cuz LNG is finally finally come of age, no longer 'stranded fields' but a real item of World Traded Energy and you know of course that natural gas is the PRIMARY hydrocarbon pre-cursor to all plastics, all synthetic longer chained natural non-biologic derivative materials and energy fuels of the future - carbon one and hydrogen 4 nothing closer to pure hydrogen, low carbon pure methane, and of course, too the methane-hydrates of MEGA proportion under the seabeds in more quantity by far, by far than ANY other 'fossil fuel' source, INCLUDING COAL
Thank you for the insight. My insight into the Energy markets is limited at best. I was merely making an observation given the recent market action and the happenings since last summer.
Can you check out my oil blog please http://www.crudeintentions.blogspot.com/
http://www.crudeintentions.blogspot.com/ and yes, i did bookmark the site...not clear if you understand that WTI is a total fraud based on leased oil tanks in West Texas, whose tickets of representation on the futures market are turned over, entire inventory as much as ten times per day, to make it 'look' significant in oil price-setting on the spot market...thats HOW IT WAS DONE last Summer of '08, not the Arabs whatsoever..
got a source where I can read more on this??
got a source where I can read more on this??
gartman is a momo trader - he will lose 50% of his clients' money. See Boone Pickens.....
Gartman's a dip$hit....
If I had the concession on "quotes" I'd be a millionaire (if you have read his letter and understand grammar and/or punctuation you know what I mean).
Its atrocious writing.
As to launching a fund, best of luck Dennis!
Turning to the Bloomberg article they said he hopes to raise $200mn the first year and yet already has several big names working for him.
Did they leave other jobs? Did Dennis "hire" them away (sorry I could't resist the quotes). Or is he giving a "seat" to someone who "day trades".
(I'm the "Gartman" of writing parenthetically)
Bwahahahahahha
Oh yeah and he'll only buy "prosaic" things that hurt when he drops them "on your feet".
Oh yeah and my posts are protected by copyright law, any one who cribs of them is "fixin for a fight".
Ye gads.....
I subscribe to Gartman. His folksy writing style gets on my nerves a bit and it's repetitive sometimes which I excuse as it's a daily. But he has had some good calls, some great calls and some crap calls. He's basically a trend follower. I don't see why he should do any worse than anyone else out there - he's not an idiot, understands markets and is disciplined with stops.
Gartman is a blowhard, gasbag that probably never traded anything. "business channels" cannot get anyone with a clue to go on the shows because traders are not allowed to speak publicly...if you do, you are out. That's one reason you see the likes of this shyster/huckster and cramer on tv - no one without something to hype would appear on tv - period. Abby Cohen and PIMCO have been making a big splash on b'berg lately...wonder what they're selling...oh yeah, the recovery.