In the BILLIONS series, axe capital is a multi-billion dollar hedge fund that aims
to deliver high returns for its investors.
They'll occasionally come up with brillians ideas, it'll slide 32 and change after word
breaks, but there's no consistency that will save us 10 million on this trade.
And most days it is a struggle saying we start talking.
I'm not going to take any of this shit back to axe that it's not just the axe team.
It's really hard to find an edge in financial markets around the world.
Most funds do not outperformed their benchmarks over the long term.
So how can we find an edge in the markets?
And can you do it even if you're not a billion dollar?
To answer.
I'll get the help of an expert.
Jim Osman, the founder of the edge consulting group.
Uh, people can make one of these days, you're going to be faster to get the information quick
and you're going to execute the high-frequency and I'll go read the big approach to trading.
We saw that Taylor tried to introduce it is another word for systemized
ordered thinking didn't go down.
Well, quant is just another word for wild.
With math, you're just not going to do that.
Robots are gonna be quicker than that.
It's not in the DNA of ax capital second way to make money.
These days, no selling this.
Someone does it.
Okay. It was based on an unsolicited tip.
This is something familiar to a capital two and a half million dollar
position will lead you into trust.
And the last way you make money.
It's by analyzing something better than the masses, special situations.
Spin-offs activist ideas is the area where Jim operates the situation that
anything there is a catalyst within the stock that will move the stock.
And we discussed the Vivendi and its spinoff universal music group.
We also spoke about Harley Davidson who announced a new CEO, unlocking a great amount of value.
What we get is the anomaly.
And some sort of transformational change.
In three ways, we look at the fundamentals, we look at the breakout valleys.
We look at the transformational values, what they become down the line.
I can see Taylor doing that type of research.
We look at the technicals where when that spinoff happens, that could fall out of an
index and that can create real selling pressure, technical selling pressure, which is not natural.
And if it's not natural and it provides options.
So they quantify that.
And that's a great job for Ben Kim.
Who's detailed, oriented and focused.
The last piece in terms of analysis, as you are here too, is the insiders.
And that requires someone who's good at digging information, turn companies around.
They know what P and L is.
They know how to get the share price up uncertainty.
A great job for dollar bill, except this time it's legal and public information for a change,
but relocating resources may not be enough.
You need to date that for a historical perspective.
And we have a database of 20 years of 30 years of looking at this.
For example, it's not enough to spot insider buying.
Some of these management are very good at buying their own stock and some of them.
You need to understand what motivates the purchase and the track record of the person doing it.
Just like one information Scott Kaz was name is being floated as the new chairman
unlocks everything in acts his mind.
In the first episode, the G-Man his team apply a systematic approach to it.
Ax capital could simply sign up to receive ideas in their inbox from the edge consulting group.
And it's not just for Petra managers.
There's a special package for nimble investors.
Outsourcing the idea generation process may sound unusual in the investment management work.
This can unlock a lot of value, but requires a new mindset where you get actionable insights from
experts who focus solely on special situations.
While you keep focusing on everything else.
As usual there's links with more information below in particular, you can
find out more about the edge consulting.
I always remember, this is not investment advice.
Seek education, diversify your portfolio and your people manage your risk.
Investing is for the longterm.
I see you
Next time