Hedge Fund final project example

The Badcharts Investor Fund:

BadCharts Corp.

Investing is ant art that requires a balanced combination of technical and
fundamental analysis. We combine the strengths of both to provide a
stable growth in our fund. With transparent and honest investing among
a community of investors, we actively aim to enrich the community and
the individuals who support it. Our aim is verum incrementum est.

Name of your fund and quick
investment philosophy intro

Poll

Would you like to start your own investment firm (fund) after you graduate University?

• 100% yes

• Maybe

• Absolutely no. Too much stress

Trade 1: Economic Fundamentals

Fundamental reasons for taking the long position on Barrick Gold:

Gold miners are undervalued and they have a lot of grow potential. Second, as inflation
is rampant and due to supply constants, and labor constraints, the trend of increasing
inflation over the long term (this decade) will continue. Precious metals are a safe
haven investment and do very well in inflationary environments. Mining stocks
historically have more alpha in this environment and should, therefore, be even more
profitable than holding gold futures or physical gold (Smith).

You need to reference something that
supports your fundamental analysis. This
counts toward your grade. There should be
at least 4 sentences with clear rationale for
your position given

Trade 1: Technical reasons for investment (daily timeframe)

Price has broken above the 20 and 50 MA on the daily, and weekly charts. It looks like
the bottom could potentially be in for the stock. Note the chart below.

Write the technical reasons and
draw up the chart accordingly.
Use tradingview.com with the
appropriate indicators.

Broken and supported by 50ema,
50sma, and 20ma

Strong reaction and bounce out of
over sold on the stochastic.

Multiple Choice

What does MA stand for?

• Mean apes

• Moving average

• Moon amber

• Monkey apples

Technical reasons for investment (weekly timeframe):

Above the EMA
(exponential moving
average) and
breaking through the
50 SMA (smooth
moving average

Trade 1: risk reward

The risk vs. reward is very good @ 1:11. We see a lot of upward potential.

This is another tool you can use. It
is great at letting you calculate
your risk vs. reward. Number 1 in
investing is limiting risk!

Trading journal (just with trade 1):

Trading journal for final project| Study of Economics via. Literature| term 3 2023

Security

Size

Position
(long or
short)

Date

Conviction

Strategy used

Reward to
risk

Points

Successful
or not

Barrick Gold

100 000
shares

long

1/6/2023

High

Fundamental | Technical Crossed the 50
DMA on the daily and weekly

1:11

Journal each trade yo make. I could even
suggest that you record the emotions and
through processes you under go. This is
important was you need to overcome your
own irrational emotions.

Trade 2: Economic Fundamentals

Fundamental reasons for taking the long position on SNP500 index:

On Friday (1/6/2023) data showed that the US economy is slowing down. The
Nonfarm payrolls data was below expectation. Moreover, PMI industrial inflation data
was well below expectations. This data further confirms that that the US economy and
inflation is slowing down. This information will allow the federal reserved to stop
interest rate hikes and possibly even lower them in the near future. The possibility of
lower interest rates in bullish for the markets as market believe cheaper money will
benefit US companies (Min & Harring).
You need to reference something that supports your
fundamental analysis. This counts toward your grade. There
should be at least 4 sentences with clear rationale for your
position given
need to reference something that supports your
fundamental analysis. This counts toward your grade.

Trade 2: Technical reasons (daily timeframe).

Price is breaking above the 20 MA and 50 ema, 50 sma on the daily It looks like the
bottom could potentially be in for the SnP500. below.

Write the technical reasons and
draw up the chart accordingly.
Use tradingview.com with the
appropriate indicators.

Price is bouncing hard
from oversold on the
daily stochastic

Trade 2| Technical reasons for investment (weekly timeframe):

There is a strong bounce from oversold
on the weekly stochastics. Pierce should
test the weekly 50MA. We believe that it
will break this time as this will be the
third time it will be tested.

Also, price tested the 20MA and has
bounced up nicely.

Trade 2: risk reward

The risk vs. reward is good @ 1:3

This is another tool you can
use. It is great at letting you
calculate your risk vs. reward.
Number 1 in investing is
limiting risk!

Trading journal (with trade 2):

Trading journal for final project| Study of Economics via. Literature| term 3 2023

Security

Size

Position
(long or
short)

Date

Conviction

Strategy used

Reward to
risk

Points

Successful
or not

Barrick Gold

100 000
shares

long

1/6/2023

High

Fundamental | Technical Crossed the 50
DMA on the daily and weekly

1:11

SnP 500
index

20 lots

long

1/6/2023

Medium

Mostly fundamental| There also some
technical reasons

1:3

Journal each trade yo make. I could even
suggest that you record the emotions and
through processes you under go. This is
important was you need to overcome your
own irrational emotions.

Open Ended

Why do you think that journaling your investments is so import?