| July 18, 2014 | | | | | |
 | | | How a Priest and a Wrestler Can Boost Your Investment Returns | | | - Why a Swiss priest could add cash to your collection plate in 2014
- Activists take the lead
- Plus: A word of caution on commodities
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| | | Greg Guenthner coming to you from Baltimore, MD...  | | Greg Guenthner | What does a Greek Orthodox priest and the WWE (World Wrestling Entertainment) have to do with you making money?
Our small-cap trading specialist Jonas Elmerraji posed this question to us just the other day. It's all part of a strange story I just had to share with you. Pay close attention! This offbeat tale contains some powerful investing advice.
I'll let Jonas take it from here...
"On July 24, 2011, Gregory Lemelson was ordained a priest in the Greek Orthodox Church.
"He was granted the ecclesiastical name Emmanuel, and assigned to the Holy Metropolis of Switzerland," Jonas explains. "There, he's the presiding priest at the church of the Epiphany in Lugano, a beautiful town of 61,000 near the Italian border. But the Reverend Father Emmanuel Lemelson isn't your typical clergyman... "That's because, Father Emmanuel also happens to be one of the most successful hedge fund managers in the world right now. In 2013, his small Amvona Fund (a name derived from the Greek word for "pulpit") produced an 89.25% gross return, beating the S&P 500's impressive gains by triple."
Not bad at all. In fact, Morningstar rated the fund in the 1% of U.S. Long/Short Equity hedge funds. And this year, Barron's and hedge fund consultant Preqin each named the firm one of the top performing global hedge funds once again.
So how can Amvona achieve these stellar returns?
"Lemelson is known for being an activist investor," Jonas says. "That means that he spots opportunities in public companies, and then tries to compel management to boost investor returns by convincing them to change the way they do business...
"Case in point: earlier this year he went to battle with WWE front man Vince McMahon. Lemelson thinks McMahon has duped investors in the wrestling entertainment company. And he's calling for big changes to shake up the organization."
Coincidentally, WWE shares jumped more than 6% yesterday on takeover speculation. Not to shabby for a stock that's taken more than its fair share of lumps this year. It's entirely possible that an activist like Lemelson could turn this company around.
But the WWE is not his only target...
On April 22, Father Emmanuel published an open letter to the CEO of a small semiconductor equipment maker. In it, he disclosed that his fund had been quietly buying up shares of the firm, and laid out his case for significant upside in the stock. In fact, it could be his highest-conviction bet ever.
See how the entrepreneurs running small companies like this are the real heroes of today's economy--and learn how you can get the ticker--by clicking this link... | | | | | | | | | America has found new oil. Lots of it. Imagine a monthly income stream that never runs dry, no matter how long you live. It's the dream of every investor... but a reality for a select few. So why is this never-ending income faucet ignored by so many? Maybe Wall Street doesn't want you to know the truth about its easiest… most powerful income-generating system. Click here and discover how to plug into this income stream today. | | | | | | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | 289 | people died yesterday when a Russian-made air-defense missile struck a Malaysian Airlines flight over the Ukraine. According to officials, it's not yet clear who fired the missile. | | 161 | points dropped from the Dow Jones Industrial Average yesterday. That takes the big index back below 17,000... | | $1,309 | is where you'll find gold futures this morning. Gold has given back about $8 in early trading after climbing back above $1,300 yesterday... | | $882 | is the price of palladium today. This strong performing precious metal is looking to take a break after hitting new highs yesterday. It's down about $3 in early trading... | | 1,956 | marks the spot for S&P futures this morning. Stocks are looking to open slightly in the green today after falling hard during Thursday's session... | | | |  | | | | Rude Trends | When to Buy... When to Sell
| | | "As I write this, I am long Sept. wheat from 536.25," writes a commodity-savvy reader. "I would caution you about telling folks to short grains...I am very confident a bottom is in and obviously have put my money behind it..."
I wouldn't short any of the grains, either.
In fact, I never suggested anyone should short wheat or corn in yesterday's issue. I simply argued it's probably best to avoid them on the long side. Obviously, the short opportunities were back in May and June. That's where the real money was made betting against these commodities.
For the record, there's a big difference between avoiding a trade on the long side and having an actionable signal to bet against a stock (or in this case, a commodity). You can't think like a Wall Street analyst when looking for trading signals. Only label something a buy or a sell when it fits your system and triggers the perfect risk/reward scenario.
For now, I'm on the sidelines when it comes to corn, soybeans and the other grains. But I wish you luck with your trade...
OK, who's next?
"Your comment on waiting for the fund to go green (after a significant drop in price) before buying sounds good and I have seen this happen," writes a self-proclaimed novice investor. "I will continue to remember this in the future..."
When you're trading, you want to take as much guesswork out of your decision-making as possible. Not all of your trades will be winners. That's an unavoidable truth. But if you wait for confirmation (in this case, making sure a stock is actually going to bounce off support rather than crash right through it), I guarantee you'll see an improvement in your performance. [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | |  | | | | Ignore At Your Own Peril | Today's Must Read Links | | | | | | | | | BE SURE TO ADD dr@dailyreckoning.com to your address book. | | | | | | | Additional Articles & Commentary:
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