Launching Catalyst Hedge Investing: Exclusive Insights From Hedge Funds

Editor’s Note: This article introduces CashFlow Hunter’s new Marketplace service, Catalyst Hedge Investing.

I’m so excited to launch Catalyst Hedge Investing, a new Seeking Alpha Investment Group. The core offering brings you long and short investment ideas and recommendations directly from hedge fund industry experts that can help you navigate various market conditions.

Seeking Alpha tells me that my followers are some of the most experienced and sophisticated investors on the site. I see that play out in the comments on my articles where followers offer engaging commentary. In order to jumpstart building this community in this group, I’m offering a limited time 20% discount for annual subscribers. Once this $399 offer is gone, it’s not coming back. So if you’re thinking of joining, act soon!

Who Should Join Catalyst Hedge Investing?

In short, people who really care about their investments and take investing seriously. After spending over 25 years on Wall Street and nearly 20 years as a hedge funds portfolio manager, I have come to a few conclusions:

• The best investors take a holistic approach and follow multiple markets: Stocks, bonds, preferred shares, options and commodities, which allows them to make money in good markets and bad.
• Information gleaned from one market can aid decisions in another.
• There often are as many good investments on the short side as the long side, and one should be able to make money in bear and bull markets.
• It pays to know specific catalysts that can unlock the value of investments.

Many stock investors were lulled into a false sense of security during the years interest rates were at rock bottom levels and growth at tech companies seemed never-ending. One could just buy a stock index or a megacap tech stock and forget about it. Those days are over. Valuation matters again. Capital structures matter again. Cash flow matters again.

Right now is the most complicated time to invest I have seen in my career. Investors face a combination of:

• Inflation
• A hawkish Federal Reserve
• High asset prices
• A possible recession

In this environment, just putting money into an ETF can lead to unexpected drawdowns. Protecting capital is as important as growing it.

What Does Catalyst Hedge Investing Deliver?

Just as the name suggests, this Investment Group caters to investors who want to make money in bull and bear equity markets. As part of that desire, they want to know what hedge funds are buying and shorting. The trouble is having access to the industry conferences and get togethers where investment ideas are discussed. This Group can help on both fronts.

Specifically, it offers:

• A model portfolio of longs and shorts with real time buy and sell calls.
• Participation in a lively and dynamic chat room that includes professional investors and some of the most sophisticated members of Seeking Alpha where investment ideas and themes get discussed in depth.
• Access to all my new articles and a library of past articles.
• Exclusive access to lists of ideas I hear pitched at regular hedge fund idea forums.
• Direct access to me personally.

Additionally, I will be taking requests from subscribers for new articles. If I can’t devote an entire article to a company, I will still give my two cents on it. This service is exclusive for subscribers.

Extras:

I understand that you don’t have the time or inclination to watch multiple markets. Fortunately, that’s how I spend my days.

Therefore, I will post about developments in the corporate bond and commodity markets as well as macro observations such as the article I posted on April 20. Some of these pieces have been quite prescient. Longer-term readers of mine got early warnings on the rise in energy prices and spike in inflation well before they became mainstream concerns. I often use this sort of information for my stock investments.

I also will write about general themes I’m seeing in the hedge fund universe. Are fund managers bullish or bearish? What sectors are they investing in? What do they think the Federal Reserve will do next?

Again, I’m bringing you the same holistic approach a fund manager takes when investing money.

My Qualifications and Investment Philosophy:

I have degrees from Wharton and MIT and I have spent my entire 25 year career on Wall Street, starting at an investment bank’s bond trading desk before moving on to managing money at a hedge fund where I have traded stocks, options, preferred shares, bonds, and commodities. Nearly 20 years later, I’m still at it.

My handle, CashFlow Hunter, says a lot about my approach. I’m a traditional value investor. I follow the cash. Then, I analyze all of a company’s securities (bonds, preferreds, options) to determine where the highest reward for the risk lies. This approach helps me find longs and shorts. It allowed me to recommend Crestwood longs in common units (CEQP) and its preferred units (CEQP.P) and timely short calls predicting the bankruptcies of Endo Pharmaceuticals (OTCPK:ENDPQ) and Silicon Valley Bank (OTC:SIVBQ).

Why Sign Up Now?

By applying this fundamentally based, valuation sensitive strategy and managing risk by running long and short, I have not only survived but thrived during:

• The dot.com bubble
• The global financial crisis.
• COVID
• Inflation with its unprecedented spike in interest rates

Experience of investing through cycles helps navigate them. History rarely repeats itself but it often rhymes. In that light, I compare this current market with the end of the dot.com bubble. The two share:

• Tech earnings have benefited from a massive pull forward of demand
• A new disrupting technology evolution has created a lot of excitement
• Large companies are viewed as having unassailable market positions and trade at big valuation premiums
• The Federal Reserve is pulling back monetary stimulus
• An economy potentially entering a recession

This view has led me to build a portfolio for my subscribers consisting of:

Click to enlarge

Unlike my articles, where I can’t notify people every time I buy or sell, subscribers will be notified of every buy or sell in real time.

Start Me Up!

I might be giving away my age and musical tastes by quoting the Stones (I have gray hair), but I have a kid’s giddiness over launching this service.

My articles have garnered over 1 million page views and just under 9,000 people follow my work. As I said above, Seeking Alpha tells me that my followers skew toward the most experienced investors with significant assets to invest. The direct messages I get and the comments in my articles back that up.

Therefore, a big part of my service will hopefully be connecting these smart and engaged people on the group’s chat board, where I will be posting regularly if not every day. To jumpstart the investing group, I’m offering early subscribers annual subscriptions at $399. This offer will not last long and once it’s gone the price goes to $499 annually or $49 monthly.

It only takes one trade like shorting Silicon Valley Bank three months before its failure or buying Tiptree Financial at 60% discount to its sum of the parts to more than pay for the subscription. The chat board, the live portfolio, the exclusivity of ideas, and access to me are all cherries on top.

I’m more than available to answer any questions. Do not hesitate to reach out to right here. I guarantee you quick and straight answers.

Lastly, do not hesitate to take advantage of the free trial. It’s completely risk free. Try the service for two weeks for free. If you feel it’s not for you, no hard feelings. I understand you have a lot of demand on your time and a lot of services to choose from. I’m not hoping to build the biggest investment group. Just the best.

If you’re reading this via Seeking Alpha’s mobile app, to try this service right now, go to seekingalpha.com and enter Outperforming the Market in the site search to visit my Marketplace Service checkout page.