The Favorite Trade

The concept of the ‘favorite trade’ is to focus the discussion down to a specific trading/investment idea.

The issues we all face are large and controversial. The idea is to break these issues down to generate ‘bets’ in liquid financial markets that offer excellent risk/reward payouts. Panelists present their ‘favorite trade’ in the form of a thesis or proposal, explain the logic, and defend the idea in front of other portfolio managers and peers. Each portfolio manager constructs their portfolio differently. The goal of the ‘favorite trade’ exercise is that each person will learn something during the discussion that makes their own investment process more disciplined/robust.

Recent Conference Recommended Trades:
• Long SP500, Short Emerging Market Equities (Fall 2012, Spring 2013)
• Long US Equity Risk Premium (Spring 2013)
• Long Cotton vs Short Soybeans (Fall 2012)
• Long Greek Bonds, Short Spanish Bonds (Spring 2012)
• Long MXN/JPY (Fall 2012)
• Long US Homebuilders (Spring 2011)
• Long Australian Bonds (Fall 2011)

The Classics – All Time Best Trades:
• Long Brazilian Equities (Mike Dooley, Cabezon, Spring 2009)
• Long Bull Spreads in Commodities (Spring 2009)
• Long USD/SFr Forward Vol (Spring 2008)
• Short Subprime Mortgages vs. Long Asian Equities (Spring 2007)
• Long Back Months of Oil Contracts or Long Canadian Shale Oil Companies (Spring 2004)
• Long EMG FX (Spring 2005)
• Long Sugar (Spring 2004)
• Short SPX vs. Long EMG credits (Spring 2002)

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