John LeGresley
John LeGresley
Occupation
Consultant
The portfolio
Largest position is the PowerShares QQQ Trust exchange-traded fund (mainly U.S. technology stocks). Stocks include Toronto-Dominion Bank, Valeant Pharmaceuticals International Inc. and Concordia Healthcare Corp.
The investor
After graduating from McGill University, John LeGresley worked as a currency trader in Japan and a securities trader in the United States. He now runs an advisory service to hedge funds and proprietary traders.
How he invests
Mr. LeGresley is an active trader who lays claim to some stellar performance. The return on his portfolio is "50 per cent or better annually for more than 10 consecutive years," he says. Skeptical? He extends an invitation to peruse his Facebook blog, where trades are recorded in posts that "are time stamped and cannot be tampered with."
Aside from contrarian bets ("recently, some beaten-up oil plays"), he often simply gets into the shares of companies that are profitable and have a solid management team with a good track record. Then, if the stock becomes overbought, he'll sell half his holdings; if they become oversold, he'll buy the shares back.
An example of an overbought situation is when the share price climbs above its 20-day moving average (a rolling average of the price over the past 20 days). Such moving averages can be calculated for various periods and in different ways.
Also, as a believer in sector rotation, he likes to ride stocks in industries that are having their turn in the sun. Lastly, he does not want to be overweight stocks when a recession (and bear market) is looming, so economic conditions are closely monitored.
Best move
"JDS Fitel … was one of my first [big winners]. It was trading for under $10 and … went to $400 before being bought by Uniphase."
Worst move
"Leaving New York and giving up my rent-controlled apartment!"
Advice to other investors
Mr. LeGresley believes most people are better off with a buy-and-hold approach over the long run, reinvesting their dividends and getting their "debt in order." He says his kind of trading is not for everybody.
Want to be in Me and My Money? Contact Larry MacDonald at mccolumn@yahoo.com or his Website.