Media was Right…but so were Flags

Posted on February 24, 2022 by Frank Sortino

Yesterday at 10:00 am PT we received two down flags from Algodynamix and sold 70% of our portfolio holdings on our R42 AI Equity Hedge Fund (Not available to the Public). That is not standard portfolio management and you will find the vast majority of portfolio managers believe in the old buy & hold practice. The AI program we use does not watch economic forecasts or listen to the talking heads on TV. But it does watch EVERY TRADE taking place in the futures market and bases its flag decisions on behavioral finance principles embedded in the code. I admit, I could not get myself to sell 70% of my portfolio, but I did sell 40% of it. Old habits die hard, as the guru said.

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About Frank Sortino

Frank Sortino is finance professor emeritus from San Francisco State University and Director of the Pension Research Institute which he founded in 1981. For 10 years he wrote a quarterly analysis of mutual funds for Pensions and Investments Magazine and he has written two books on the subject of Post Modern Portfolio Theory. He has been a featured speaker at many conferences in the U.S., Europe, South Africa, and the Pacific Basin. Dr. Sortino received his Ph.D in Finance from the University of Oregon and has carried out research projects with many institutions like Shell Oil, Netherlands and The City and County of San Francisco Retirement System.
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2 Responses to Media was Right…but so were Flags

  1. Frank Sortino's avatar Frank Sortino says:
    February 24, 2022 at 8:25 pm

    I heard some past president thinks Putin is a brilliant world leader. Could have fooled me. I no longer have a financial theory or behavioral theory to believe in. I have turned to quantum physics.

    Reply
  2. Ron Surz's avatar Ron Surz says:
    February 24, 2022 at 8:13 pm

    Hi Frank. i hope all well. What are your thoughts on “buy the dip”? I think it’s nuts. The Dow was down 1000 early in the day bu now it’s just down 200. Maybe Ukraine is winning?

    Reply

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