Hedgefundie's portfolio

[Texas Proud]

So, thought that I would take a small account and try to do Hedgefundie's portfolio...


A short recap from me... it is a 3X S&P 500 and a 3X treasury fund... I picked 60/40. Here is the article that someone else had in a different post..


https://www.optimizedportfolio.com/hedgefundie-adventure/


So yesterday sold out of my Vanguard MF so I can have a clean account... IOW, the returns will only be from this strategy....


WELL, I go in this morning to buy the ETFs... and Vanguard will not let me in an IRA account. It says no leveraged or inverse purchases allowed... Now I thought that the investment was supposed to be in an IRA so you could re-balance easily with not tax problems...


Is this just a Vanguard restriction? Or is this something that most brokers will not allow?

 

[COcheesehead]

So, thought that I would take a small account and try to do Hedgefundie's portfolio...


A short recap from me... it is a 3X S&P 500 and a 3X treasury fund... I picked 60/40. Here is the article that someone else had in a different post..


https://www.optimizedportfolio.com/hedgefundie-adventure/


So yesterday sold out of my Vanguard MF so I can have a clean account... IOW, the returns will only be from this strategy....


WELL, I go in this morning to buy the ETFs... and Vanguard will not let me in an IRA account. It says no leveraged or inverse purchases allowed... Now I thought that the investment was supposed to be in an IRA so you could re-balance easily with not tax problems...


Is this just a Vanguard restriction? Or is this something that most brokers will not allow?

Fidelity lets you buy high risk, but you have to acknowledge that you understand they are high risk and change your investor profile. CYA all day. I have leveraged CEFs in my IRA right now.

 

[Golden Mean]

Yeah, no fun stuff at Vanguard. You might look at the modified approached here: https://www.bogleheads.org/forum/viewtopic.php?t=357281

The doc in the 2nd link suggests different ways to achieve the requisite leverage in different accounts.

 

[4legsgood]

...
Is this just a Vanguard restriction?

When I tried to buy UPRO the first time, I had to check a couple of boxes at Schwab and Fidelity saying I understood the risks of leverage. Thereafter, I could buy no problem.

 

[teej1985]

Yes, it's a Vanguard restriction. You can't hedgefundie at Vanguard.

 

[VanWinkle]

Another reason to send rookie investors to Vanguard....

 

[Texas Proud]

So, going to have to move this small account over to Fidelity... lucky that I have an even smaller one there already... both are inherited IRAs...

 

[Texas Proud]

OK, started to process to move... but it takes time... will update when I start the investments...

 

[kgtest]

Interesting. I don't do any hedge fund things. I can open up options trading if I wanted to, but even that does not excite me.

I just buy AAPL. The most exciting part of my investing strategy is just hanging out in this forum...unless you consider buy and hold exciting hehehe.

I always felt like even if you were right 80% of the time, that other 20% could be the dagger in the coffin for some folks risk approach.

I've been with VG for a while with no issues. Maybe I need to make my investing style a little more interesting. I still have 8 yrs to go, and having 36% of our equities in AAPL stock is somewhat exciting, especially on a day like today.

 

[Texas Proud]

Well, today cost me a lot of money that I could have earned...


Did a quick check and it looks like I would have made 7.7% just today!!!


Started the switch and it will take a week!!