Ok, again I mention the Yen and the end of 0% but this time I’d like to talk about it in terms of the Uberman’s Portfolio.? First of all, I’m extremely excited that I get to “participate” in this event because what better way to test out the strength of the UP in its early days than a once-in-a-decade event of this magnitude?? And to make it more exciting (and valid), I’m the “wrong” way on Yen, being short nearly 4.1 million of the little suckers (that sounds like a lot but it’s only about $35,600 worth), in the face of what is supposed to be a bullish outcome.? Now, of course, no one knows what will really happen because life isn’t that easy but being short isn’t the safest place to be I guess.? So this should really put the UP through the ringer and we can see what it’s made of.

To summarize my current position, I started with $10,001.33 on 6/28 and my NAV now stands at $10,4oo or so after running 24/7 for 15 days.? It’s hard to pin down as it fluctuates every second.? Needless to say, it’s on a bit of a drawup so a more conservative measure would be to say I’ve booked $73.37 of interest since then which is an APR of 16.74%.? This is a result of running a?low yield version of the UP (10% expected yield) for about 1.5 weeks and since Monday I’ve been at a much higher yielding portfolio (39.375%).? I currently control about $125,000 worth of currency pairs as follows: 7.59% AUD/JPY, 1.45% USD/JPY, 19.85% GBP/JPY, 0.10% CAD/JPY, 41.36% GBP/CHF, 2.92% NZD/USD, 1.11% USD/NOK & 25.63% EUR/CHF, all long.? So I’m nice and Yen-exposed but it isn’t nearly the most dominant, with that title going to the GBP and CHF.

I’ll report back after the 12 am announcement to tell you what the house of the rising sun is made of.? Hopefully not cards.

Update: How funny.? The BoJ raises rates as expected but their comments are so dovish and the rate increase was so priced in that the Yen?is down even more, leaving the UP about $200 more profitable overnight.? Man, if this thing doesn’t draw back down soon, I’ll have to start worrying about the quality of the hedge because if it can up this much, it can go down that much too.? But it’s not a problem really.? The drawup is still within the 10% range that I’m shooting for and that was the average setting.? In other words, 10% directional moves are to be expected.? The +2 SD level is around 25% so it’s a long way from that.