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The Call @ Hedgeye | April 16, 2024

Why hasn't Keith McCullough gotten more bearish following an outpouring of negative news about Apple?

"It's because I want to get paid," Hedgeye's CEO explains in this clip from The Macro Show. "I get paid if I execute on the process. We sell on green, we cover on red. Going to neutral means nothing other than I'm getting paid. That's it."

McCullough's signal on Apple flipped from bullish to bearish, but one stock doesn't change his entire investing outlook. While some may consider that stance "neutral," he maintains many more long and short positions than most major hedge funds.

"The world's largest hedge funds only run neutral, they don't run 15-25% net short," McCullough adds. "According to them, I'm just getting to where I'm not recklessly short. My 'neutral' includes 25 longs that have been chugging it from an alpha perspective."

Rather than rely on narrative, emotional reactions or headlines, McCullough's process relies on signals and mathematical indicators that provide an opportunity to generate alpha.

"Get yourself in a place where you actually run a portfolio. Don't pretend. Don't have five stocks over here and pick the three ETFs you can afford," McCullough concludes. "Force yourself to create a portfolio. Then you'll understand it doesn't matter if I'm net short, neutral, whatever. Make money."

Watch the full clip above.

McCullough: My Long/Short Book Is Based on Process, Not Feelings  - TMS Banner