Research Edge 2, Gartman 0

 

I know, I know, this guy McCullough and his colleagues at Research Edge are very cocky.  They talk about being right, but they aren't running real money.  We've heard it all and, in fact, some of the criticisms are fair, but the fact of the matter is we endeavor to generate money making ideas for our clients and we have done that.  Since inception we have been right 87.4% of the time on our short calls and 83.2%  on our long calls.

 

Some of those ideas were short term and some of those ideas were in illiquid names, but, by golly, that is out of 472 positions!  Our whole business model is to try and deliver high probability ideas to our clients and the facts suggest we have delivered, despite our many faults. And we do have many faults.  In fact, I'll call our CEO out on one his faults, when he gets in at 515am every morning, he's grumpy.  That's a fault.

 

Earlier this week, we introduced a new scorecard to measure ourselves and it was versus Dennis Gartman, aka Garty.  We think he is a good guy who finds interesting nuggets, but we are just not convinced he can beat us consistently.   

 

On May 17th in our Early Look note entitled ""Short Of" Garty?", we wrote:

 

"This does not mean, however, that I need to subscribe to the panting dog nodding that CNBC's Fast Money's producer must force his Traders" to look into the eye of the camera with when listening to the Gartman gospel. Someone has to hold the members of this circus act accountable. The American Financial system is being You Tubed by the world, daily, and it's just too embarrassing to know that The Client (China) thinks that this is what US investors do.

 

So Garty, let's slap the ole red, white and blue accountability pants on and take a walk down the path of a few positions that you are currently "short of", The Dow and Gold:

 

1. I have also been "bearish of" the Dow via the DIA etf, but covered my position on Wednesday's weakness

 

2. I am long Gold via the GLD etf, and remain "bullish of" it

 

Garty, like you, I'm in it to win it here and I want to see you keep winning man. If the Dow is down, at a bare minimum, just cover your short. As for being "short of" gold, well, I know that you know that I'm right on this, so... cheers to changing as the facts do."

 

In the last few days, Garty capitulated on both Gold and U.S. equities and while we salute him for being flexible as the facts have gone against him, the score remains: Research Edge 2, Gartman 0.

 

The puck drops again tomorrow at 930am.  Keep your head up Garty Fans. . .

 

Daryl G. Jones
Managing Director

 

Research Edge 2, Gartman 0 - hansonbros

 


7 Tweets Summing Up What You Need to Know About Today's GDP Report

"There's a tremendous opportunity to educate people in our profession on how GDP is stated and projected," Hedgeye CEO Keith McCullough wrote today. Here's everything you need to know about today's GDP report.

read more

Cartoon of the Day: Crash Test Bear

In the past six months, U.S. stock indices are up between +12% and +18%.

read more

GOLD: A Deep Dive on What’s Next with a Top Commodities Strategist

“If you saved in gold over the past 20 to 25 years rather than any currency anywhere in the world, gold has outperformed all these currencies,” says Stefan Wieler, Vice President of Goldmoney in this edition of Real Conversations.

read more

Exact Sciences Up +24% This Week... What's Next? | $EXAS

We remain long Exact Sciences in the Hedgeye Healthcare Position Monitor.

read more

Inside the Atlanta Fed's Flawed GDP Tracker

"The Atlanta Fed’s GDPNowcast model, while useful at amalgamating investor consensus on one singular GDP estimate for any given quarter, is certainly not the end-all-be-all of forecasting U.S. GDP," writes Hedgeye Senior Macro analyst Darius Dale.

read more

Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

read more

People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

read more

UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

read more

Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

read more

Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

read more

An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

read more

Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

read more