Why I Won’t Reveal the Components in My High-Beta Tech Short Basket

I received a number of emails from subscribers who don’t understand why I refuse to discuss the constituents of my high-beta tech short basket:

* I am not making investment recommendations — I am simply showing what, in principle I am doing.  

* I show my weightings (S, M, L) as an indication of my confidence level, among other factors. It also reflects the risk appetite/discipline I have incorporated in the conservative way I manage Seabreeze Partners.

* If I was to mention the names in the basket — particularly since many of the stocks move plus or minus 10% a day — it would likely be interpreted as a recommendation.  

* I don’t feel most retail traders/investors should short stocks for the reasons I have discussed over the last 28 years. This is especially true of these high-beta and volatile stocks.

* When I put on an aggressive short (like this) it should indicate how bearish I am and how unfavorable I view reward vs. risk. That’s the message that I am communicating. 

* Frankly it is not hard to figure out several of the constituents in my tech short basket, but I’ll leave it to your imagination. 

Position: Short High-Beta Tech Basket 

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Posted by Doug Kass

Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality. On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box." A Note from Doug: Current strategies and actionable trade ideas -- all on one dynamic platform built exclusively for active trades. From sudden sell-offs to sudden spikes, TheStreet Pro arms you with crucial analysis -- at a rapid fire, professional pace -- to help you make sound trading decisions -- every day, every hour, and every minute. Join me and my team of professional traders for unique perspectives and breakthrough investment opportunities.

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