Food for thought, page-4

Yes Jam, classic post and all fair points.

If you wanted something to protect against falls, the new WDE LIC, Weath Defenders does more of the call options and writing against large falls. I certainly understand they are not market neutral, despite the word being thrown around alot (even by company), but instead they close stocks against each other, eg WBC Long and ANZ short currently.

So yes, the success of this stock, especially when they are neutral exposure, is the skill at picking the longs and shorts. Ideally, yes, they would like longs to rally, and shorts to fall. Personally, I cold never run a company like this, as you really have to know your stuff!!! For example, you'd think long BHP and short FMG would be a clever call, but then Iron Ore rallies 20 percent, and your in trouble.

With NTA still around 1.28, I'm not worried in a falling market, as long as they pick a point sometime to increase long exposure, this takes alot of skill to pick the bottom! Look at the GFC, so many false bottoms.

One thing is for sure. I've lost alot, thankfully partially offset by gains in CTN FGX CDM WAM, but still deep in the red for the year. I should have decreased my exposure, but instead I have been buying ALF all the way down down down. Now I am faced with a situation, do I buy more, or do I watch and see.

In reality, management could have done better, but they were $1.00 at float, and they hit 1.80 nearly, but are now down alot this F/Y.

I think their mistake was not being long over the 12-24 months, and then not seeing 6000 was silly heights. Being neutral exposure, and relying on stock selection, is near impossible in this market. I brought this stock, because I have neither time or money to trade, pick bottoms, short etc. NOW, I find myself worrying more about what these guys are doing!