The General’s Portfolio

Lately there’s been news that the former director of NSA, LTG Keith Alexander, has been investing in some obscure investments.

Why would the head of NSA buy (or sell) Potash Corp. of Saskatchewan ($POT)? That’s not the usual company that individual investors buy. Major producers of Potash are Canada and Russia, while China is a major consumer. Isn’t that a bit…odd?

Or what about the Aluminum Corp. of China ($ACL), which is often called Chalco for short? This is a state-controlled enterprise. We have to wonder if the spymaster had some inside info.

I’m afraid to disappoint you, but I have a very different answer. It’s just a guess, but I think my theory explains the general’s actions.

He was a subscriber to an investment newsletter — and most probably one with a momentum-based strategy. Both those stocks had soared during much of the last decade. They’re the kinds of things that look great on a track record.

Many investment professionals don’t know those stocks. They were probably picked up in some type of screener.

Posted by on October 28th, 2014 at 11:17 am


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