I would worry quite a bit about the differing profiles of the longs and shorts though.
Looks like longs are off-the-beaten track, eclectic ideas, but the shorts are the most crowded, highest short interest, most widely discussed short ideas, sometimes with promotional, exaggerated short cases. I'm thinking CVNA, PLTR, HIMS, etc. I guess it is probably fine given you say they are sized very small, but the factor mismatch could lead to some disappointing periods.
For shorts, I would look to shift exposure to more challenged, lower growth businesses with underappreciated headwinds. Solve for that instead of excessive valuation imo.
Thank you for your comment; my short-selling positions are short-term. I am new to short selling and for now this represents a very small % of the portfolio. I agree with you and will continue to learn more to increase my advantage in the short-selling world.
I use several tools to find new ideas. For example, Stockwatch for Canada, Tracktacle for the United States. I have subscriptions to hundreds of Substack. The MCC forum is also a great source. Otherwise, I read a lot of financial reports and sometimes screener with strange configurations. Earning calls are also a source of information on potential opportunities in a particular sector.
Very interesting portfolio, thanks for sharing.
I would worry quite a bit about the differing profiles of the longs and shorts though.
Looks like longs are off-the-beaten track, eclectic ideas, but the shorts are the most crowded, highest short interest, most widely discussed short ideas, sometimes with promotional, exaggerated short cases. I'm thinking CVNA, PLTR, HIMS, etc. I guess it is probably fine given you say they are sized very small, but the factor mismatch could lead to some disappointing periods.
For shorts, I would look to shift exposure to more challenged, lower growth businesses with underappreciated headwinds. Solve for that instead of excessive valuation imo.
Thank you for your comment; my short-selling positions are short-term. I am new to short selling and for now this represents a very small % of the portfolio. I agree with you and will continue to learn more to increase my advantage in the short-selling world.
Makes sense. I have spent a lot of time thinking about short selling. Let me know if you ever want to compare notes.
Great write-up!
Interesting set of positions. I like how mentally flexible you are at what you own. Where do most of your ideas come from?
I use several tools to find new ideas. For example, Stockwatch for Canada, Tracktacle for the United States. I have subscriptions to hundreds of Substack. The MCC forum is also a great source. Otherwise, I read a lot of financial reports and sometimes screener with strange configurations. Earning calls are also a source of information on potential opportunities in a particular sector.