My long RIMM short AAPL trade is doing very well, up almost 20%. Admittedly it is more being long RIMM than being short AAPL (which was the point of the original post) which has made me the money, and if I had not been short AAPL but just naked long RIMM I’d be up 36%. I hate paired trades, think they are a useless hedge fund conceit. Still, one in the eye for Felix, I suppose, serves him right for not including Ultimi Barbarorum in his much-linked-to pantheon of “econoblogs”. What is an econoblog anyway? Silly idea. Had there been a category for “pseudo-philosophical claptrap which increasingly meanders into pointless discourses about markets and stuff”, we would have been mentioned for sure.
I have been stuck writing an over-long, over-involved blog post all week, inspired by Zubin Jelveh’s fascinating post on a thought experiment to describe how the Quant hedge fund guys all blew up in August. It opens up so many thoughts, avenues of enquiry and theories on the market that I just got lost; I feel I need to write a book on it or something. I’ll try and get a shorter version out this weekend.