CRAY ($28) is Still Outperforming AAPL Over Last 5 Years

Hedge funds, which have returned just 3.3% to investors in 2014 still have AAPL as their top holding as it approaches Three Quarters of a Trillion dollar valuation. As the popular index values and components get changed and rigged over the years, the bandwagon effect and the concentration of diluted investment ideas find more and more fund assets being funneled into the market caps of a few very large valuations.

Sure you have a company that has a lot of cash on their balance sheet, over priced products, and a good reputation for delivering products that people like, but how much real opportunity is there going forward? Large fund managers like it because it is a vast liquid vehicle for holding their assets under management and they can participate in the current earnings and likable balance sheet that the company currently has. In 15 years or less, investors in the company have enjoyed a near 3000% return on their investment.

The common laptop or desktop computer currently lags the processing power and storage capacity of a supercomputer by about 20 years. By the year 2030 it is predicted that each person will have on their desk or lap the processing power of a computer that is equivalent to the processing power of the human brain. As artificial intelligence improves, we can expect that by 2035, we might even have the software that will be able to replicate these ‘brain programs’ for the computers in the future.

Supercomputer companies like CRAY are going to be making vast improvements to their products and eventually will be able to make smaller and more cost effective machines. As the computing power gets more powerful and smaller, there will be more and more applications that the retail end users will be able to do with faster and better computers.

Eventually, a company like AAPL will not be able to sell their over priced goods for as much as they are currently fetching, and the margins that they currently enjoy will become reduced. If you have the opportunity to invest in a small ONE Billion Dollar valuation of a supercomputer today, rather than a 750 Billion dollar computer company of yesterday, which would you choose? The answer seems clear.

Human downloads are coming this century and the next at the latest. As these computers become faster and more powerful, with extreme increases in storage capacity, it will become more and more compelling for people to drive toward obtaining these devices and store vast valuable information about themselves in uploads. The software and the storage will make huge improvements over the next few hundred years, and going into the next thousands of years. Humans who have built up massive fortunes of wealth will be interested in preserving their legacy and their information within the advances of technology and research. Fortunes will be preserved and built for the generations of investors who make investments now for their children, their grand children, and their great grandchildren, etc.

Nobody can even imagine what the world will be like in terms of a few decades or even 100 years. But we are not talking just a century, we are taking tens or hundreds of thousands of years into the future. Vastly more powerful programs and new paradigms in wealth, computing power, life, and family. We cannot perceive these events now, but eventually we will be able to.

Six Years Since the Financial Crisis and Indices at Record Highs

As the markets are headed toward higher levels, volatility and speculation will certainly increase. Investors and high net individuals should look toward trading strategies and managers who have experience short-selling and specialize in profiting from these environments. While most short only funds are concentrated in very large capitalization companies, the astute investor should look toward more nimble and smaller firms or managers who can take advantage of these opportunities that will be presenting themselves more and more frequently.

Managed accounts are becoming an increasingly sizable part of the hedge fund arena, largely as a result of their inherent flexibility, strong operational oversight and the benefits of enhanced liquidity and greater transparency. Managed accounts do, however, require a significant change in approach from both the investor and the manager. Investors should be aware of the shift in responsibility on the operational side from the manager to them and the need to fully understand their requirements and their own capabilities, while managers may have to accept tighter controls around trading, liquidity and investment allocation placed upon them.

John Chalekson

Volatility and Short Selling Specialist

Managed Account Structure

Independent Trader/ Researcher

John Chalekson is 37 years old with 20 years of experience in equity markets. John Chalekson is an ex-hedge fund manager who started a fund at the age of 23 years old after success at multiplying several individual stock trading accounts up to 150 fold. John Chalekson specializes in shorter term swing trading as a short seller. He is currently open to handing new accounts in the Managed Account Structure, making decisions for the account holder with Power of Attorney. Individuals or Institutions who are Accredited or Qualified Investors may consult with Mr. Chalekson via Linkedin, Email, or Telephone.

Please Connect With Me on Linkedin and Send Me An Introduction Message:

http://www.linkedin.com/pub/john-chalekson-unicorn/52/357/653/

This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error, please notify the system manager. This message contains confidential information and is intended only for the individual named. If you are not the named addressee, you should not disseminate, distribute or copy this email. Please notify the sender immediately by email if you have received this email by mistake and delete this email from your system. If you are not the intended recipient, you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.