Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

When I started in the hedge fund industry going on 22 years ago, you didn’t have “rules” governing your “net exposure.”

In 2003, my carveout hedge fund book was up +81% gross, and I seriously couldn’t tell you what my net exposure was, ever. How else do you think someone with less than 5 years experience could make that kind of money unless he had no rules?

Then, of course, there was Amaranth, where another Canadian dude had a dissimilar experience with net long leverage.

But my history isn’t the point. The evolution of the hedge fund business is. It drives The Machine. We’ve effectively neutered most rookie and veteran PMs from swinging it around like I and many other hedgies used to.

But that doesn’t mean that I can’t do that now, within the privacy of my own “family office”, eh!

The fact of the matter is I did swing BIG net Long yesterday (73% net long to be precise). Although Real-Time Alerts is NOT a portfolio (it’s a signaling tool that helps you fade your fear and greed), I swung it to 20 LONGS vs. 2 SHORTS yesterday.

Because many aren’t allowed to do that doesn’t mean you or I can’t.

CHART OF THE DAY: Investment Landscape Evolution  - 4 21 2021 7 31 25 AM