i think it’s finally time to spill the beans on this one. don’t ask me who the girl is, though. i’ve sworn secrecy. i begin
lost in thought yesterday, i kinda remembered why i got in touch with her in the first place. it was march 2005. a few days after the dire straits concert. the days when i used to crib that this friend of mine was troubling me with her cribbo SMSs and was expecting me to provide emotional support. and that was the term when we learnt investments, under the wonderful Prof. Vaidyanathan. and that was the time when we learnt portfolio theory.
now, there was some day when i was really bored and had no one to talk to. a little analysis revealed a glaring incompleteness in my portfolio – all my friends whom i regularly kept in touch with was in IIMB. so, with the ongoing end-terms and submissions there, everyone seemed busy and i didn’t have too many people outside of IIMB to generally talk and crib to.
my brilliant mind put two and two together and realized that “investing” in this woman would diversify my portfolio and help me handle stuff better. the investment started paying dividends immediately (in terms of tlaking to me). and i continued to invest more in that.
soon a time came (jan06) when i suddenly realized that i had overhedged and what was originally the hedge had now become my primary investment! and that it was an extremely volatile stock i had invested in (i had somehow ignored the volatility all these months, though i was fully aware of it). and now i had to invest more in friends at IIMB, who were originally my “investment” to hedge the overhedge! somehow at that point of time i didn’t have too much heart to sell the volatile hedge, since it had till then provided pretty good returns and not caused too much downfall. so i invested more in the hedge-of-the-hedge.
however, soon after we graduated that stock started showing its real volatility. like the BSE Sensex at that point of time (and now), it kept hitting new heights and depths each day. and caused much heartburn. and refused to declare dividends even. a couple of falls were incredibly hard then, and i decided enough was enough. i sold the stock, albeit at a much lower price than i had bought it at.
now, once again, i have an unhedged mostly-IIMB-only portfolio! and a mutual fund called orkut to partially hedge it.