The Rise and Fall of Andy Zaky

Philip Elmer-DeWitt on Andy Zaky, whose work I’ve long appreciated:

As Apple’s share price climbed and Zaky’s fame spread, investors clamored to get in. In June 2012 he opened his newsletter up to a flood of new subscribers, charging the members of this group $200 a month. At its peak, Bullish Cross Pro had 700 subscribers and a lively bulletin board where Zaky would often field more than 500 comments and questions a day.

Meanwhile, he was onto something even bigger. In late 2011 he’d launched Bullish Cross Capital L.P. — basically an Apple-only hedge fund — with a handful of subscribers. By the spring of 2012, the fund’s investor rolls had grown six fold.

In a Form D filed in November 2012, Zaky reported to the Securities Exchange Commission that Bullish Cross Asset Management (BCRAM) had attracted 28 limited partners with an average investment of $378,000. The minimum investment, which started at $250,000, had grown to $500,000 by March 2012.

Elmer-DeWitt cites my linking to Zaky’s “buy” recommendation on 17 May last year. I wrote then:

This is only the fifth time Zaky has issued a buy on Apple. He’s four-for-four.

Now he’s five-for-five. Apple’s share price went way up in the months after May. But Zaky wasn’t able to profit from the rise he foresaw, and got caught short when it began to fall.

Monday, 4 March 2013