I like writing about investing. I wrote a quarterly investment letter for the fund when semi-annual was all that was required.
But the nonsense that is required to write a letter that talks to investors like partners and actually means something has become a bridge too far. This is an example of a new mandatory definition page from a fund.
No mas.
Definitions:
Apes: A meme derived from the Planet of the Apes movie and now used on Reddit’s online forum WallStreetBets to refer to retail investors who are bullish on heavily shorted stocks.
Altcoin: A cryptocurrency other than Bitcoin.
Basis point: One hundredth of a percentage point (0.01%).
Blockchain: A system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.
Credit spreads: The difference in yield between corporate bonds and U.S. Treasuries.
Cryptocurrency: A digital currency in which transactions are verified and records maintained by a decentralized system using cryptography.
Diamondhands: Term used on Reddit’s online forum WallStreetBets to refer to people willing to hold on to a trade until the end goal is reached, despite intermittent risks.
Dividend yield: Dividends per share divided by stock price.
EV/EBIT: Enterprise Value of a company (Market Capitalization – Cash + Debt) divided by its trailing twelve-month Earnings Before Interest and Taxes (i.e., operating income).
EPS (Earnings per share): Net income divided by shares outstanding.
ETF: An Exchange Traded Fund is an investment fund that trades on stock exchanges, like stocks.
FOMO: Acronym for “fear of missing out.”
HODLer: A term used in the cryptocurrency market for someone who buys and holds indefinitely. Originally considered a misspelling of “HOLD,” the term now implies “Hold On for Dear Life.”
IPO: An initial public offering is when a private company first offers shares to the public.
Leveraged single stock ETF: Tracks the price of a single stock and uses derivatives to attempt to multiply the stock’s daily return.
Mag 7: The Magnificent Seven influential large capitalization U.S. technology stocks, including Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla.
Meme coin: A cryptocurrency that originated from an Internet meme or from some other humorous angle.
Meme stock: An equity that has gained viral popularity through social media.
Momo: A momentum trading approach, where you follow existing price trends.
Net Asset Value (NAV): The value of an entity’s assets minus its liabilities.
NFIB: National Federation of Independent Business, an organization for small business owners
NFT (Non-fungible token): Cryptographic tokens on the blockchain that can’t be replicated.
NYSE: New York Stock Exchange
Price to Earnings (P/E) Ratio: A stock’s price divided by its earnings per share.
Price to Tangible Book Ratio: A stock’s price divided by its tangible book value, or shareholders’ equity, per share.
Risk premium: The return in excess of the risk-free rate an investment is expected to yield.
Russell 2000: An American small-cap stock market index based on the market capitalizations of the bottom 2,000 companies in the Russell 3000 Index.
S&P 500: The Standard & Poor’s 500 is an American stock market index based on the market capitalizations of 500 large companies.
SEC: Securities & Exchange Commission.
Shiller CAPE (P/E): The cyclically adjusted price-to-earnings ratio is a valuation measure usually applied to the US S&P 500. It is defined as price divided by the average of ten years of earnings, adjusted for inflation.
SIA Bullhorn Staffing Indicator (Commercial): Reflects weekly hours worked by temporary workers across a sample of U.S. staffing companies that use Bullhorn’s technology solutions. Commercial is a combination of light industrial and office/clerical.
Tangible equity (book value): Shareholders’ equity, or total assets excluding goodwill and other intangibles minus total liabilities.
Tendies: Term used on Reddit’s online forum WallStreetBets to refer to short-term gains or profits.
YOLO: Abbreviation for “You only live once.”
Zero-day options (ODTE): An option contract set to expire at the end of the current trading day.
