In Hebrew, the word "emes" means truth (emunah).

As most are now aware, I try to be transparent and honest in my Diary.

You've got to ac-cent-tchu-ate the positive

E-lim-i-nate the negative

Latch on to the affirmative

Don't mess with Mr. In-Between

You've got to spread joy up to the maximum

Bring gloom down to the minimum

Have faith, or pandemonium

Liable to walk upon the scene

To illustrate his last remark

Jonah in the whale, Noah in the ark

What did they do

Just when everything looked so dark?

- Harold Arlen and Johnny Mercer, Ac-Cent-Tchu-Ate the Positive 

Like many in the business media who "spread joy up to the maximum and bring gloom down to the minimum," I am not trying to accentuate the positives of my ideas and sweep the investment boners under the rug. I take full ownership for my losers and mistakes.

Here is a vivid example of the repeated B.S. on Fin TV that occurred recently — in which panelists use networks as platforms to improve their brands, sell a service and gather assets:

Rather, I am trying to explain (analysis) why, when and at what price I conduct my business of trading and investing. I attempt to provide a thoughtful and, at times, an outside of consensus view on companies, sectors and markets. (And I try to write in a readable and fun matter (often quoting musical lyrics or pop culture events)).

I have been terribly off-sided in my market view over the last 18 months. And I have admitted this, frequently.

That wrong view has resulted in my inability to take advantage of investment opportunity sets on the long side.

But, almost as important (perhaps!) is that despite such a problematic and ursine market outlook — reflected in mostly a net short exposure since early 2024 — my hedge fund has recorded profitable monthly returns in 21 of the last 22 months (with the only drawdown a modest -22 basis points in a four week period!). And, in November (month to date), my Partnership has been profitable — so that's 22/23 months of generating positive investment performance.

Am I pleased how wrong-sided I have been in view? Absolutely not. I take my mistakes in view (and this has been a whopper) seriously... perhaps, at times, too seriously.

But I press forward, awaiting the day when I capture the grand opportunity set on the short side.

So, how do I generate positive returns while being so stupid?

In a nutshell, I trade opportunistically and dispassionately. You see this daily in my (sometimes) frenetic trading activity (which I provide in real time — 24/7 — to all subscribers).

Think of a cash register.

As Friedrich Nietzsche wrote, and Kelly Clarkson sang:

 "What Doesn’t Kill Us Makes Us Stronger." 

This commentary was orginally posted in Doug's Daily Diary on TheStreet Pro.

At the time of publication, Kass had no positions in any securities mentioned.