February 3rd, 2021
When it comes to the saying, what have you done for me lately- The Insiders Fund has been on a tear literally obliterating the performance of the S&P 500 returning close to 92%in the last three months and two days alone. The Fund is up already 21.8% in February.
“It’s a bit of quirky math, that we got to that number, “ Harvey Sax, the fund manager said. “We haven’t backed out the management fee yet for February which our fund administrator will do, so it might not make as catchy a headline but it will still be a mind-numbing number investors will be delighted with”.
THE INSIDERS FUND is a long-short equity fund that invests in companies at or near prices that management has been willing to invest significant amounts of their own money in. After all, who knows a business better than the people running it? You’ve always heard the best information is “inside information”. The SEC mandates that officers, directors, and 10% shareholders file a Form 4 detailing buying and selling in their company’s stock within 48 hours. The SEC makes this info public immediately upon receiving it.
This is as close to “insider information” that an ordinary investor is likely to see.
The Insiders Fund was the 4th best performing long-short equity fund in the United States for the month of November 2020 with a return of over 38% according to BarclayHedge, a leading independent alternative database vendor. In 2019, it was also the 4th best performing long-short fund in the U.S with a return of 33% after all fees.
“I’m often asked what insiders are buying now,” Mr. Sax said. “Bottom line is that insiders are not buying much. But this is the big but- they are buying something.”
The Insider Fund maintains a blog on its website and provides a free newsletter about insider buying and selling. “You don’t have to be an insider to invest like one,” Sax said. In September the Fund blogged that Insiders Kill it Again- Largely Led by Cassava Sciences $SAVA a potential 200 Bagger. Cassava Sciences was up 160% on Tuesday alone on an interim analysis of an Alzheimer’s treatment.
You can find these kinds of investment nuggets by following The Insider’s Fund blog, or our social media sites on Twitter, Facebook, and Linkedin although be aware that The Insiders Fund may have positions long or short in these names and makes no promise to inform readers of any changes in our holdings. The newsletters and social media posts do not purport to be financial advisors and any or all of these posts may be inappropriate for your own financial circumstances. Readers are urged to consult with their own advisors or one of our registered investment advisors at the General Partner of the Fund, Alpha Wealth Funds.
If history does repeat or even if it just rhymes, there is a lot more to come in this market according to Sax. “There have been more than a few comparisons to the “Roaring Twenties”, the boom period after the last global pandemic, The Great Influenza of 1918.
It’s hard to find value whether it’s in the stock market or the house next door. At 22.5 times forward earnings, the S&P 500 is far from cheap, and the Shiller price/earnings ratio, at 33.9 times, is even higher. Those valuations make sense only relative to zero interest rates in the U.S., as even expensive multiples look attractive when the alternative is earning nothing on cash.”
The election is over and there is promising vaccine news. The Fed is accommodative and a new Democratic administration will be anxious to boost the economy. History doesn’t repeat, it rhymes and this is the new roaring twenties. Sax warns, “It’s easy to get carried away in this kind of market but paying attention to what the insiders are buying with their own money is the best way to keep you from losing yours.”
THE INSIDERS FUND invests in companies at or near prices that management has been willing to invest significant amounts of their own money in. The Fund is sold by prospectus only to accredited investors. Past performance is no guarantee of future results. The Fund is independently administered and audited since its inception in 2010 by a PAOCB member.
Alpha Wealth Funds is the General Partner of The Insiders Fund as well as two other emerging hedge funds, the Volatility Advantage Fund and soon to be offered, Alpha Low Volatility Fund. Warren Buffett would be the first to tell you that emerging fund managers can often outperform legendary investors such as himself because smaller size funds have so many more opportunities to move the needle.
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For further information about The Insiders Fund contact: Harvey Sax
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