From the Famous…Value Investing Lecture #8 on LEAPS
This fund run by a SAC Capital alum bought restaurant stocks amid the pandemic
Prentice Capital Management was up 6.6% for the first four months of the year, compared to the S&P 500's 9.3% decline and the Russell 2000's 21.1% decline. The HFRX Equity Hedge Index was down 9.4% for the quarter. Q1 2020 hedge fund letters, conferences and more Gross and net exposures In his first-quarter letter to […]
Editor: The professor and Great Investor (“GI”) views options in a unique way to
carve out precise risk
and reward investments. You can, for example, combine this technique with steady, stable companies like Coke (KO) or Campbell Soup (CPB) or a quality cyclical like 3M (MMM) to craft limited losses with more leverage or commit less capital for higher reward. The reasons these companies may offer better opportunities are because of their liquid option markets and profitable growth which will increase their intrinsic value over time. Of course, you must pay a reasonable price for those securities
the LEAPS are another arrow in your quiver. This is an important lecture for individual investors.
You Can Be a Stock Market Genius by Joel Greenblatt