November Average Return:1.2%

We close all positions except those opened on November 23.
Live Portfolio:

No.	Open Date	Long	Open	Last	Short	Open	Last	Net Return
1	2009-11-23	FIS	23.06	22.6	MA	233.49	240.86	-5.2%
2	2009-11-23	URI	9.7	9.22	GWW	98.57	97.7	-4.1%
3	2009-11-23	GME	25.8	24.41	ROST	44.1	43.98	-5.1%

Closed Pairs:

No.	Open Date	Long	Open	Close	Short	Open	Close	Close Date	Net Return
1	2009-11-05	UNH	27.95	28.76	CYH	33.58	32.82	2009-11-12	5.2%
2	2009-11-05	CVH	21.78	22.71	CYH	33.58	32.82	2009-11-12	6.5%
3	2009-11-05	ORLY	37.31	39.31	PSS	19.42	19.86	2009-11-12	3.1%
4	2009-11-05	ORLY	37.31	38.78	ANF	33.12	39.93	2009-11-30	-16.6%
5	2009-11-06	TSN	12.65	12.02	HANS	33.22	34.97	2009-11-30	-10.2%
6	2009-11-06	TSN	12.65	12.02	AVP	33	34.25	2009-11-30	-8.8%
7	2009-11-06	WLP	50.72	54.03	PDLI	8.24	8.17	2009-11-30	7.4%
8	2009-11-09	BDX	70.82	74.8	HSP	46.96	46.95	2009-11-30	5.6%
9	2009-11-12	EQR	31.25	32.21	HRP	6.73	6.14	2009-11-30	11.8%
10	2009-11-12	SPG	72.21	72.66	HRP	6.73	6.14	2009-11-30	9.4%
11	2009-11-13	NDAQ	18.92	18.68	MCO	23.59	23.23	2009-11-30	.3%
Nov	Culmulative								13.7%
Nov	Average								1.2%
Oct	Culmulative								59.7%
Oct	Average								6.6%

New pairs to hold for the last week of November

Open on Monday, November 23 at MOO:

No.	Open Date	Long	Sector	Industry	Short	Sector	Industry
1	2009-11-23	FIS	Information Technology	IT Services	MA	Information Technology	IT Services
2	2009-11-23	URI	Industrials	Trading Companies & Distributo	GWW	Industrials	Trading Companies & Distributo
3	2009-11-23	GME	Consumer Discretionary	Specialty Retail	ROST	Consumer Discretionary	Specialty Retail

Portfolio Recap:Nov 20,2009

Live portfolio:

No.	Open Date	Long	Open	Last	Short	Open	Last	Net Return
1	2009-11-05	ORLY	37.31	38.9	ANF	33.12	39.73	-15.7%
2	2009-11-06	TSN	12.65	13.07	HANS	33.22	35.42	-3.3%
3	2009-11-06	TSN	12.65	13.07	AVP	33	34.03	.2%
4	2009-11-06	WLP	50.72	52.14	PDLI	8.24	7.9	6.9%
5	2009-11-09	BDX	70.82	73.7	HSP	46.96	46.88	4.2%
6	2009-11-12	EQR	31.25	31.95	HRP	6.73	6.56	4.8%
7	2009-11-12	SPG	72.21	72.56	HRP	6.73	6.56	3.0%
8	2009-11-13	NDAQ	18.92	18.97	MCO	23.59	22.95	3.0%

Closed transactions:

No.	Open Date	Long	Open	Close	Short	Open	Close	Close Date	Net Return
1	2009-11-05	UNH	27.95	28.76	CYH	33.58	32.82	2009-11-12	5.2%
2	2009-11-05	CVH	21.78	22.71	CYH	33.58	32.82	2009-11-12	6.5%
3	2009-11-05	ORLY	37.31	39.31	PSS	19.42	19.86	2009-11-12	3.1%

Holding to Month End

The live portfolio suffers loss mainly from the short target ANF. We will hold the portfolio to the end of November.

No.	Open Date	Long	Open	Last	Short	Open	Last	Net Return
1	2009-11-05	ORLY	37.31	38.97	ANF	33.12	40.11	-16.7%
2	2009-11-06	TSN	12.65	13.07	HANS	33.22	35.11	-2.4%
3	2009-11-06	TSN	12.65	13.07	AVP	33	34.33	-.7%
4	2009-11-06	WLP	50.72	52.14	PDLI	8.24	8.01	5.6%
5	2009-11-09	BDX	70.82	73.46	HSP	46.96	47.11	3.4%
6	2009-11-12	EQR	31.25	32.12	HRP	6.73	6.54	5.6%
7	2009-11-12	SPG	72.21	73.91	HRP	6.73	6.54	5.2%
8	2009-11-13	NDAQ	18.92	19.3	MCO	23.59	23.19	3.7%

Long NDAQ and Short MCO

We will Long NDAQ and short MCO at MOC.

Portfolio Recap:Nov 12,2009

Three pairs opened one week ago were closed to release the capital for today's new pairs.
Live portfolio:

No.	Open Date	Long	Open	Last	Short	Open	Last	Net Return
1	2009-11-05	ORLY	37.31	39.31	ANF	33.12	36.76	-5.6%
2	2009-11-06	TSN	12.65	12.97	HANS	33.22	34.31	-.8%
3	2009-11-06	TSN	12.65	12.97	AVP	33	34.31	-1.4%
4	2009-11-06	WLP	50.72	52.5	PDLI	8.24	8.2	4.0%
5	2009-11-09	BDX	70.82	72.2	HSP	46.96	47.16	1.5%
6	2009-11-12	EQR	31.25	31.11	HRP	6.73	6.66	.6%
7	2009-11-12	SPG	72.21	71.71	HRP	6.73	6.66	.3%

Closed transactions:

No.	Open Date	Long	Open	Close	Short	Open	Close	Close Date	Net Return
1	2009-11-05	UNH	27.95	28.76	CYH	33.58	32.82	2009-11-12	5.2%
2	2009-11-05	CVH	21.78	22.71	CYH	33.58	32.82	2009-11-12	6.5%
3	2009-11-05	ORLY	37.31	39.31	PSS	19.42	19.86	2009-11-12	3.1%

Trading Plan:2009-11-12

We have two pairs in REIT to trade at MOO:

No.	Open Date	Long	Sector	Industry	Short	Sector	Industry
1	2009-11-12	EQR	Financials	Real Estate Investment Trusts	HRP	Financials	Real Estate Investment Trusts
2	2009-11-12	SPG	Financials	Real Estate Investment Trusts	HRP	Financials	Real Estate Investment Trusts

Portfolio Recap:Nov 9,2009

The loss of today is the short holding of ANF. It was up 7.37% today, so the return of ORLY-ANF dropped to -7.5%. However, other pairs performed well. As we expected, the opening price of BDX and HSP have no surprise.

No.	Open Date	Long	Open	Last	Short	Open	Last	Net Return
1	2009-11-05	UNH	27.95	29.13	CYH	33.58	32.6	7.1%
2	2009-11-05	CVH	21.78	22.68	CYH	33.58	32.6	7.1%
3	2009-11-05	ORLY	37.31	39.56	ANF	33.12	37.59	-7.5%
4	2009-11-05	ORLY	37.31	39.56	PSS	19.42	20.19	2.1%
5	2009-11-06	TSN	12.65	13.1	HANS	33.22	34.39	.0%
6	2009-11-06	TSN	12.65	13.1	AVP	33	33.84	1.0%
7	2009-11-06	WLP	50.72	52.36	PDLI	8.24	8.19	3.8%
8	2009-11-09	BDX	70.82	71.64	HSP	46.96	47.47	.1%

Trading Proposal for Monday, Nov 9, 2009

We have one pair to trade today. There is no corporate event with these two companies, and we can open it at Market On Open:

No.	Open Date	Long	Sector	Industry	Short	Sector	Industry
1	2009-11-09	BDX	Health Care	Health Care Equipment & Supplies	HSP	Health Care	Health Care Equipment & Supplies

Portfolio Recap:Nov 6,2009

The short target HANS dropped more than 6% today. Unfortunately, the open price was significant lower than the previous close price. We will switch to market on close to open our positions.

No.	Open Date	Long	Open	Last	Short	Open	Last	Net Return
1	2009-11-05	UNH	27.95	28.67	CYH	33.58	32.56	5.6%
2	2009-11-05	CVH	21.78	21.99	CYH	33.58	32.56	4.0%
3	2009-11-05	ORLY	37.31	38.44	ANF	33.12	35.01	-2.7%
4	2009-11-05	ORLY	37.31	38.44	PSS	19.42	19.92	.5%
5	2009-11-06	TSN	12.65	12.87	HANS	33.22	34.46	-2.0%
6	2009-11-06	TSN	12.65	12.87	AVP	33	33.12	1.4%
7	2009-11-06	WLP	50.72	51	PDLI	8.24	8.19	1.2%

Market On Open or Market On Close?

We have noticed that Market On Open price has great uncertainty. Overnight news and fewer participants can make MOO price significant low of high, and therefore MOO price is not a good choice to open position. Market On Close is much better. We will switch to Market On Close price for opening price. As a result, trading proposals are expected to come out around 3pm.

Trading for Nov. 6, 2009

Open following pairs at MOO:

No.	Long Ticker	Industry	Short Ticker	Industry	Sector
1	TSN	Food Products	HANS	Beverages	Consumer Staples
2	TSN	Food Products	AVP	Personal Products	Consumer Staples
3	WLP	Health Care Providers & Servic	PDLI	Biotechnology	Health Care

Live Positions

No.	Open Date	Long	Open	Last	Short	Open	Last	Net Return
1	2009-11-05	UNH	27.95	28.21	CYH	33.58	33.74	0.5%
2	2009-11-05	CVH	21.78	21.90	CYH	33.58	33.74	0.1%
3	2009-11-05	ORLY	37.31	37.78	ANF	33.12	35.12	-4.8%
4	2009-11-05	ORLY	37.31	37.78	PSS	19.42	19.69	-0.1%

Performance in October

Following are the performance of the model in October:
The cumulative return is around 60%, and the return on the account is close to 25% in one month.

No.	Long	Short	Open(MOO)	Close	Net Return
1	AN	GPS	2009-10-05	2009-10-20	11.20%
2	AN	PSS	2009-10-05	2009-10-20	-5.80%
3	Y	AJG	2009-10-05	2009-10-20	-4.30%
4	Y	MBI	2009-10-05	2009-10-20	21.21%
5	INTU	JKHY	2009-10-05	2009-10-20	2.20%
6	WRB	ORI	2009-10-06	2009-10-27	5.80%
7	BKC	WYNN	2009-10-21	2009-10-27	9.40%
8	PENN	BOBE	2009-10-28	2009-11-04	11.57%
9	PENN	CCL	2009-10-28	2009-11-04	8.37%

The original public posts are: Link

Trading for Nov. 5, 2009

There are four pairs to trade today:

1. Long UNH and Short CYH

2. Long CVH and Short CYH

3. Long ORLY and Short ANF

4. Long ORLY and Short PSS

All orders should be opened at Market On Open, with same dollar amount in the long side and the short side.

Trading like a hedge fund is simpler than you think

Trading like a hedge fund actually is simpler than you think. I will show how to do that in a simple strategy: pairs trading.