Justin’s note: Today, we’re introducing you to the newest analyst for our friends over at the Palm Beach Research Group. His name is Jason Bodner, but they call him the “Billionaire Broker.”
A couple of months ago, I met Jason at a private conference in Miami. His presentation was incredible, and his strategy is unlike any I’ve heard before.
He’s figured out a unique way to track “whales”—billionaires whose buying can push stock prices higher—and follow them to profits. In this exclusive interview with Palm Beach Daily analyst Nick Rokke, Jason pulls back the curtain on his proprietary system and reveals what’s triggering it today…
Nick Rokke: Welcome aboard, Jason. We’re glad to have you on the PBRG team. In a moment, I want to hear what sectors you’re bullish on.
But first… You had a successful career on Wall Street. So why are you coming public now?
Jason Bodner: First, it’s my pleasure Nick… And I’d like to say hello, and thank you, to Daily readers.
I started my Wall Street career in July 2001 as a stock options trading desk clerk at Cantor Fitzgerald in New York. I moved to London just before 9/11… which saved my life.
My first trade was over $50 million worth of Vodafone, a well-known British telecom stock. I worked my way up the ladder in London and New York, and became the head of North American Equity Derivatives for seven years.
I spent a few years at Jefferies, another big bank… selling derivatives and exchange-traded funds (ETFs). My trade ideas were a hit with clients. A few of them urged me to strike out on my own.
I had a successful career on Wall Street. But the truth is, it wasn’t as fun as it used to be.
I felt like I had learned as much as I could. Free from the trading desk in New York City or London, I could use my knowledge to help ordinary investors.
I could also be my own man in the process—and I could do my work sitting by the beach.
Nick: Yes, living in South Florida does have its benefits…
Around the office, we call you the Whale Hunter because of your knack for uncovering stocks that institutions are buying.
How did you get interested in hunting whales?
Jason: It’s a long story, but I’ll make it short…
Back in 2010, I was the head of my trading desk at Cantor. A friend from another big bank called me to buy some stock for a big client.
My firm matched big institutional buyers with sellers. In a few minutes, I found a seller and offered my friend 100,000 shares (about $2 million worth of that stock). He bought it instantly.
“Do you have any more?” he asked.
By the end of the day, I sold him one million shares of the stock, which was worth about $20 million.
The next day, I sold him another one million shares of the same stock.
By now, the price was clearly lifting. Same thing the third day: another one million shares, and another lift in the price. And again on the fourth day… I knew this was something special.
After about a month, I had mopped up and sold him every share of that company’s stock that I could find.
The stock had risen so much (nearly 70%) that it was making headlines on CNBC.
A few days later, I finally found out who that buyer was. A $20 billion hedge fund acquired more than 15% of the company we traded. Through me and my competitors, it bought 50 million shares of this stock.
Now, imagine how much you could have made if you bought that stock before the hedge fund completed its order…
If you bought it on the day of the first order, you’d have turned $1,000 into almost $1,700 after four weeks.
Since that day, I’ve been consumed with tracking “whales,” like you say.
Nick: Some people call your system the Billionaire Indicator. How does it work?
Jason: I designed my proprietary system to uncover what I call “unusual institutional” (or “UI”) buying.
We believe that’s when big-time investors like Warren Buffett, John Paulson, and George Soros are buying up millions of shares in secret.
These whales may try to keep it quiet… But I created my system to sniff them out.
And when they tip their hands and start buying the highest-quality stocks, that gives us an added boost for higher probability trades.
The system works in two steps…
First, I look for great companies. I’m talking about firms that report blowout numbers and beat analysts’ expectations… they also have double-digit, three-year sales and earnings growth.
Next, I try to identify the hidden patterns that signal institutional buying. I found clues from the massive orders I handled over the years as a trader.
For example, when whales are buying, you tend to see stock prices rocket up and break higher than their recent ranges. You’ll also see above-average volume and volatility.
That’s how it works in a nutshell.
Nick: I’ve looked over the track record of your system… It’s impressive. Over the past five years, your system picked 182 stocks … and 152 were winners. That’s an 83% win rate.
Jason: Yes, and those winners are from stock plays…
But I do want to point out that my trades aren’t options plays… even though the gains can sometimes be in the quadruple digits.
You don’t need to use margin, leverage, micro-cap stocks, or any other risky or exotic instrument, either.
In other words, even though these are big triple- and quadruple-digit winners, they came from simple stock picks.
That’s all my system spits out.
Nick: OK, let’s get to what everyone wants to know… What sectors are triggering your UI signals today?
Jason: Sure… This is the fun stuff.
I’m seeing a lot of buy signals on consumer discretionary and information technology stocks.
In the consumer space, we’re seeing restaurant stocks getting bought up. We see some higher-end fast food chains in there, too. This is happening along with some apparel names. Clothing and footwear stocks are also popping up on my model.
As far as tech stocks… we’re seeing continued buying in semiconductors and software service stocks. It’s also worth mentioning that health care equipment stocks are attracting institutional attention as well.
One really cool thing I’m noticing is that many of the stocks triggering my system right now are small-cap domestic companies.
That’s backed up by the recent strength of iShares Russell 2000 ETF (IWM). It’s significantly outperforming the S&P 500 and Dow Jones Industrial Average. This bodes well for continued strength of U.S. stocks and our domestic economy.
Aside from this data being really bullish, I think the part that’s most fun is knowing that one of our next big winners is sitting somewhere in this group.
Nick: That’s great, Jason. Not a lot of people who I talk to are bullish on the market right now. I’m glad to hear you are… and that you’re tracking some of the same themes that we’re following in the Daily.
We’ve been following the Russell 2000 ever since President Trump took office. We thought these companies would thrive under his policies.
And we’ve been following semiconductors since October. The sector has risen about 20% as a whole… probably in large part due to the institutional buying you’re seeing.
It’s good to see your data signal that the big money guys are buying into these themes. That gives me even more confidence that they’ll continue to go up.
Thanks again for joining us today.
Jason: My pleasure.
Justin’s note: Jason just launched his elite-level service, Palm Beach Trader, in which he uses his proprietary system to find stocks that can double or triple in a few months. Over the past five years, Jason has picked 182 stocks using this strategy… and 152 were winners. That’s an 83% win rate.
If you’re interested, you need to act soon. You have until midnight tonight to sign up and get a 50% discount. Go here to get all the details…
Today, high praise for Crisis Investing editor Nick Giambruno…
Nick, GREAT WORK on Crisis Investing. I believe you are right on track, and I’m glad to be on board.
If you’re not a Crisis Investing subscriber yet, you can learn more about the service right here.
As always, let us know your thoughts, including any suggestions you may have for the Dispatch, right here.
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