(This is an excerpt from an article written on Substack by Mark Bunting. You can read Mark's full bio below).
Every couple of months, my wife drops a large envelope on my desk like the one in the picture above. Inside is a fat stack of white paper sheets, the latest a half an inch thick, comprising dozens of approval forms for employee transactions.
I have to sign off on trades in my personal account, as does she, for compliance reasons, because she manages my retirement account as a registered portfolio manager and CEO of a boutique investment company.
One time, she laid the envelope on my desk and said with a hint of derision,
“You’re a day trader.”
I don’t think of myself as a day trader. To me, those are people who sit at their screens throughout the trading session making dozens of trades trying to shave off small profits.
Not me. My trades are based on what Keith McCullough is doing within his long-only “Mucker Family Office” account made up of macro ETF positions.
The daily trades of the founder and CEO of Hedgeye Risk Management are emailed weekday mornings to subscribers of the company’s Portfolio Solutions product.
McCullough’s trades this past Friday looked like this:
Keith's Commentary: "In the PA today, I added NLR and KBA at my mins. Sold all IDX and UNG. Sold 100bps GLD and PPLT. Sold 50bps AAAU, GII, XLRE, EZA, SLV, FUTY, AMLP, WOOD. Bought 50bps BUXX."
The emails also include a daily ETF re-rank of McCullough’s positions based on position sizing, and a breakout of top movers and bottom movers over one-week and one-month periods.
I base my equity positions on companies that are on Hedgeye’s Investing Ideas list and/or Signal Strength Stock list, and/or are ranked by Hedgeye analysts as Best Idea Longs such as Newmont Corp., ULS Solutions, and RH (Restoration Hardware).
But these heavy, tangible stacks of paper helped me realize how much I trade within the Hedgeye process. They also made me question how I was using the process and if there was a different, less active way to do it to suit my risk tolerance.
After all, I’m not Keith McCullough. I’m not a former hedge fund manager who devised and refined his own macroeconomic, multi-factor, multi-duration, fractal math-based trading system which has him touching multiple positions a day selling SOME here and buying SOME there. Keep that inventory moving. They’re just tickers, as he likes to say.
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ABOUT MARK BUNTING This is a Hedgeye guest contributor piece written by Mark Bunting and reposted from his Substack publication. Mark is a seasoned financial journalist with 25 years of experience in the industry. His career includes 15 years as an anchor and reporter for Business News Network (BNN Bloomberg), where he also served as London Bureau Chief for three years. He currently is the host of RCTV for Red Cloud Financial Services, focusing on interviews with CEOs and leaders in the metals and mining sector. Mark also plays a significant role at Red Cloud’s conferences, where he conducts keynote interviews and moderates panels. Additionally, he is an on-air host of sponsored content for BNN Bloomberg Brand Studio and has previously been the publisher and host of Uncommon Sense Investor and Capital Ideas Media. Mark started his career with The Sports Network (TSN). He has been a Hedgeye subscriber for three years.. View all posts by Bunting on his Substack. X (Twitter) handle: @MarkBunting_ LinkedIn: Mark Bunting |
