1) Have these results been audited by an independent auditor? The site you mention has a clear conflict of interest…
2) Is the pool that generated 45% return the only pool entered in the Robbins contest?
3) How do you adjust returns for risk? I ask because the dude who runs (ran?) $9bn at Amaranth Advisers was up close to 40% as of 3-4 weeks ago…and now he’s down more than 50% on the year after a big, risky trade went against him. You can make big bets that will often produce outsized returns — happens all the time — but you need to disclose the risks involved in taking those bets.
4) Chris, if you can replicate these kinds of results over time, you should stop fiddling around with a newsletter and put your energy into gathering funds…on normal hedge fund terms, you’d be entitled to a $3m payout YTD on your results with just $25m under management, which is tiny by hedge fund standards. And you could take the rest of the year off to work on your golf game…
