The Deleveraging Process Has Begun

I’m not here to amuse you, jackass. I never have been, nor will be. Whether you read the site or not is immaterial to me, not so much for the other top hatted folks who shovel coal into the iBC furnaces. I want to be very specific when I say, 2013 is the most important year of my career. I’ve been building up to this point for a long, long time. I was supposed to launch a fund several years ago, but procrastinated, then delayed some more.

Following 2011 and 2012, with returns in the mid single digits, I find myself less than enthused with my market approach and have subsequently put my big plans on hold. Well here I am, off to another gangbuster year, up 20% so far, trying to hold it together. Pardon me if I place my clown hat, gloves and scarf on the side, as I attempt to restore a sense of normalcy into The House of Fly. If you happened to be anywhere within 100 yards of me, I’d break your jaw bones into 10,000 pieces with a clawhammer. If, however, you were at 101 yards, I’d simply snark at you and warn you to “steer clear” with my faux southern accent.

I sold HLF because Ackman convinced the NCL to take a negative position on HLF, requesting the FTC open an investigation. While I did enjoy the specter of causing him pain, then anguish, via a “barbell’d” approach long HLF, short JCP, I cannot remain long a stock that might undergo a very negative news event. I wish Icahn the best and I am sure he will win in the end.

With the sale and the bulking up on my AG short, I am now in a net 95% long position, down from a record 140%. I am, however, looking at a series of banks trading below 1x book for possible purchase and might allocate funds there soon. My other big positions are all subject to sale, irrespective of what my core thesis might be.

2013 has to stick. If I cannot pull off 30-50% gains in 2013, I am underserving of the title of Blogfather and will resign from the post, vacating it until a new Blogfather is chosen, just like the new Pope.