HAG: Friday update

Today, System HAG doubled-up on Etrade and also bought Ameritrade and Corning. The Etrade buy is particularly compelling because threats of a brokerage commssion price war have permeated the markets recently.

The trading program currently has 75% of its holding in online brokerages and it very exposed to a significant price movement in this sector. Ideally, the program would never be so concentrated in one area, but markets have not been volatile enough to diversify away single stock market risk. Whatever the outcome on Monday, a failing of System HAG is clear--an investment in System HAG is no less risky that an ivestment in a single risky equity. Hopefully, sizable returns will more than compensate for the increased risk.