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