Our Story




Message from the Editor-In-Chief of Pelham Blue Fund

This all began as a side project in 2012, when I became totally engrossed by the movements in the stock market. In Malaysia, it was a vibrant year, with multi-billion ringgit IPOs and penny stocks that quadrupled in value in a matter of months.

But to be honest with you, it has never really got better for the local stock market since then. Trading participation keeps decreasing every year. I see less deals, less IPOs, and less easy opportunities for profitable investments.

My career has always revolved around finance in some way. Most of it involve direct engagements with bankers, CEOs, companies. I was fortunate to have this access; it enabled me to learn, comprehend, and empathise with what it takes to run businesses in Malaysia.

After seven years of observing the markets, taking down notes, and some fairly amateurish investing, my immersion in the markets is absolute. I can't get enough of it. This is not done for fun or for easy money - it's a lifelong vocation that I've put my heart and soul into.

There are so many interesting stories to discover, and so many local champions that are worth highlighting. These are the success stories in the capital markets, and not too long ago they were widely recognised and promoted on our stock exchange.

With this blog, the mission is twofold : to demonstrate that it is definitely possible to achieve market beating returns in the local market, and even more importantly, to highlight Malaysian companies as lucrative investment opportunities.

The intended outcome is to bring more people (and of course, younger people) back into the stock market. Our local companies need local champions, and the easiest way to to do this is via equity participation. A vibrant and dynamic capital market is important for economic advancement, for the companies and for this country.

There is nothing wrong with pursuing alternative investment avenues. Unit trusts, property, equity crowdfunding, even cryptocurrency - it is up to you. But there should always be a place for stocks. They represent a participation in something beyond mere numbers and profit targets. These are companies employing real people, doing real things. They are the engines of national growth. They deserve our respect.

By sharing these trading stories, I hope that you too can learn, comprehend, and empathise.


WHAT THE TEAM DOES

We have built a small team of like-minded people who share an interest in... well, shares.

Empirical research is the foundation of our operations. We would test everything there is to test - fundamental analysis, technical analysis, news analysis, situational investing, and much more.

The testing aspect requires real capital commitments. So we're talking about real money, real stakes. We were involved in stocks, futures, and warrants. There were massive wins and ugly losses. On balance, we did not really know what we were doing at the beginning.

After some painstaking note-taking and massive monetary losses, we started improving, slowly at first, and then it all clicked. Somehow we managed to develop a unique investing style that works for us. 

At the very start, we were quite pleased to achieve profits of RM100 plus after commissions from a good trade. Many years later, we are able to get a hundred times that amount from a single trade. Yet there is still much work to be done.


Trading is a never-ending feedback loop. We get things wrong every day; it helps with humility. We test things until wrong becomes right, and they do, eventually.

Back to the empirical approach. What was really interesting were the very fundamental questions that kept recurring in our minds:

Are these gains real?

Are they sustainable?

Is the stock market simply full of gamblers?

Are big profits down to skill or luck, and if so, how to reliably measure them?

Can you trade profitably in a falling market?

And the most important one : what does it take to achieve large, consistent gains in the stock market via active investing?


What we are undertaking is a risky project, although the potential returns more than make up for it.

Trading is not for the faint of heart, and the possibility of losses are very real. To continue learning, we have had to make real personal and financial sacrifices. We consider ourselves richly rewarded in experience since then. The profits are great too.

We are day traders with quirks. We reject some conventional notions about investing. We definitely reject the get-rich-quick investment seminars touted by the gurus out there. We are enemies of rumours and friends of hard, honest work.

We are unique for several distinct reasons:

1) Our investment fund is mostly in cash in order to gain maximum leverage and to be deployed only when an opportunity arises. We are happily in cash when there's nothing to trade, insulating us from negative market conditions. But we are not averse to long term positioning  either.

2) We are active traders of not just stocks, but also structured warrants (company or index linked) and initial public offerings (IPOs).

3) We also have the ability to short sell the markets via index linked put warrants, a crucial tool when markets go sour.

4) We constantly and incessantly study unique market signals and different trading approaches. We are particularly adept at analysing liquidity, market volatility, and panic selling situations. If we were to sum up our philosophy, we are essentially traders of volatility, on both the upside and downside.

5) We do not utilise conventional charting principles and technical analysis with all the exotic terminology, preferring to analyse price and volume activity instead. We do respect the candlestick chart; we just look at it differently.

What do we get from this trading style that we have developed? How about the ability to make RM10,000 in an hour? We once made RM27,000 in five days. Or, given the right situation, how about RM50,000 in a single week?

Other people may make similar claims, but we urge you to ask for proof. Ours is right here in these pages. We even walk you through each trade in extreme detail, no holds barred. And it's all for free, for you to read and hopefully learn from.

The downside of this approach? Occasional exposure to large losses, of course. Rewards do not come without risk. Managing it properly is what makes the fund sustainable. Our focus is never on getting the most money out of a trade; it's about perfect execution of a sensible plan, with profits that are commensurate with our efforts, and with manageable downside risk.

Would people believe us if we just tell them about profits of such magnitude? Of course not. So we decided to document our experiences on this blog. We extract raw info and data with no filters or editing to make you believe that yes, anybody can trade profitably on Bursa Malaysia.

We are supporters of the bourse and good Malaysian companies. We hope that by documenting our experiences and wins, more people will consider joining the stock market. The best Malaysian corporates, big or small, are worth championing.
We aim to dispel negative notions about the stock market. Trading is not a bad thing. It is indeed possible to aim for massive double digit profits from stocks without gambling, deceit, or market manipulation.

The stock market is not for the foolish or lazy; given the right approach, you can make huge profits, but it requires discipline, sheer grit, and the occasional large losses - the dreaded 'tuition fees'.

It will literally take years of hard work and delayed gratification of material items. We've been doing this for seven years and we feel we have only just started truly learning things.

We do not claim to be smarter than everyone else, but we do have a good grasp of how the market works. And what works is not always what you read about in the media or what you learn from investment seminars.

We will forever be students of the markets, and to really learn we have to put our money where our mouths are. Hence the entries you see on this blog; each trade is a documentation of how things went right, or wrong, and the consequence of our decisions. We do not paper trade; the losses and gains are very, very real.

If you're young, or if you have disposable income, we'd like to show that it is alright to dream big. Do what you believe in and don't be afraid of failing. In the business of trading you can fail and succeed in a single day, every day. If you lose, you're always fully accountable for it.

This blog is where you can track every step of our journey.







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