In 2013, Altisource was the best performing long position in my portfolio. In 2014, I unfortunately made it the largest position in my portfolio. Because of that, I am badly lagging the market.
So far I have shorted the common shares of more than 80 stocks this year. On common shares, I have been profitable overall despite a rising market. Unfortunately, losses on put options (mainly YONG) have more than wiped out the gains on my common stock shorts.
I think that I’ve gotten fairly good at spotting bad stocks. My CAPS account is a reflection of that. (*CAPS does not consider the mechanics of borrowing shares. It’s unrealistic.) Unfortunately, I’ve been losing money on put options this year. Part of this may be because I mainly short small cap stocks which are too illiquid to buy put options on. As well, many of my shorts are volatile so the put options would be neither cheap or attractive.
See below for commentary on certain positions. Keep in mind that due to the sheer number of positions, my research on short positions is typically very shallow.