Is Too Tall Jones too tall. Does this portfolio look familiar: Barron’s Article April 19, 2010. This portfolio is featured in today’s Barron’s along with its creator, Stephen Cucchiaro, President of Windward Investment management. The magazine lauds Cucchiaro for his risk management and superior returns:In 2002,”all three strategies posted positive returns, notwithstanding a 22% decline in the Standard & Poors 500. The benchmark rebounded the following year, rising 28.7%, and Windward ’s funds outpaced it again.” Barron’s went on to say that the portfolio appreciated 108% since 2002 versus a 13% increase in the S&P. While theses results are impressive, Oristano’s results are a tad better despite the current hedges of one type or another covering over sixty two percent of the portfolio: positive 7.64% in 2002, and a compounded return of 133% since 2002. We remain one of the best kept secrets on Wall Street.
PS The long anticipated correction may finally be upon us, and with the current apathy creating low volatility, it is likely to extend beyond the one to two percent corrections that we have been experienced over the past year. On the other hand, it is also unlikely to extend beyond a five to ten percent downdraft as the longer term technicals suggest the current cyclical market has a long way to run.