Position Trading Update

We are not sure how many of you have had the opportunity to read out HX Legacy Primer. It walks you through our investment methodology for HX Legacy in depth.

We wrote it so obviously we are biased but it is a great piece that discusses what we are looking for in a position as well as some evolutions that we are adding to HX Legacy from our previous firm Empire Financial.

One of those evolutions is that we are giving our subscribers ideas around trading “around” our ideas.

We recommend one of two strategies when looking at these ideas…

One strategy is simply to buy an equal-weighted position in each idea (say 5% of your long-term investment portfolio) and then hold on and do NOTHING. If something changes in our views, we will quickly inform you that we think the position should be eliminated.

The other strategy is to follow our “position sizing” guidance.

The investment strategy we ran at our hedge fund for two decades successfully traded “around” positions. This activity both created incremental return but also helped us manage volatility.

We think both strategies make a ton of sense and which one you choose depends on your own investment goals.

Today, we are making our first “trading” recommendation around one of our initial HX Legacy positions.

We seldom will make these types of recommendations. Most of the time we just stick with the core position.

Occasionally, though, the stock market will give us opportunities to trade around the position. Sometimes it will be taking profits and sometimes it will be adding to a position.

We will do this rarely, but these are valuable opportunities.

To see our recommendation, read more here…

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