Portfolio Performance: +9.6% YTD through July 2008

Click here to view the spreadsheet containing all disclosures for my complete equity portfolio, including initial entry points, YTD returns, total returns, etc.

THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET

  • Enlightened-American Portfolio: +9.6% YTD (including dividends)
  • DJIA: -14.2%
  • Nasdaq: -12.3%
  • S&P 500: -13.7%
  • DJ WIlshire 5000: -12.6%
  • Reuters 2000 (smallcap): -6.7%

Due to the commodities correction currently underway, the portfolio performance has dropped considerably from +18.4% just last month. Currently, the portfolio is +9.6% YTD, mainly on the back of realized gains as our current portfolio holdings are basically flat for the year. This compares favorably to returns of -14% for the Dow Jones Industrial Average and -13% for the broader market as represented by the Wilshire 5000.

Despite the severity of the pullback in energy and materials, I remain bullish on those sectors (but not necessarily buying my current positions). As detailed in the spreadsheet link above, I have opened new put positions in Yamana Gold (AUY) and Talisman Energy (TLM), whose stocks are selling as if oil was in double-digits and gold under $800/oz.

Obviously, the 40% drop in ACAS (partially offset by the 15% gain on the put option) really puts a dent in my concentrated portfolio. The positions I am most concerned with, in order, are 1) ACAS, 2) NZT, & to a much smaller degree, 3) SKM. SK Telecom has already reported earnings that, on first glance, seem okay but their continued efforts to push into the US markets via Sprint-Nextel worry me. I have extensively detailed my worries on American Capital elsewhere. Telecom New Zealand reports earnings next week and I’ll be watching for any further deterioration in their business position.

I remain heavily weighted in cash (40%).  The current pullback in commodities, if it continues, presents an easy opportunity for LONG-TERM investors in these difficult markets.  For other sectors, I am demanding a high margin of safety before opening positions.  The economic perils confronting investors, especially in the US, are much greater than the mainstream media would have us believe.  As such, I am treading very, very carefully.

As always, take in everything with a healthy dose of skepticism (even my blog), do your own due diligence and arrive to your own conclusions. These are my (silly) opinions only and YMMV.

One Response to “Portfolio Performance: +9.6% YTD through July 2008”

  1. Kathy Hurley Says:

    I was searching for this type of data and after many unsuccessful keywords I found the data I was looking for 2008. Do you have the data YTD? How much further below -13% and -14% is the market?

    Thanks for any possible insight you have. I am clearly not doing as well as you are. I thought I was balanced with 42% bonds/cash, 12% internatinal, and 48% stocks and yet my portfolio decline seems dramatic.

    Kathy

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