Year-To-Date Portfolio Results

THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET

  • Enlightened-American Portfolio: +2.2% through June 14th, 2011 (my actual IRR, including cash balance)
  • DJIA: +4.5%
  • Nasdaq: +1.1%
  • S&P 500: +2.6%
  • DJ Wilshire 5000: +2.4%
  • Russell 2000 (smallcap): +1.4%

Apologies for the tardy update this month. Stocks’ summer swoon leaves us decidedly in the middle of the pack compared to the above market indices but seeing as the Enlightened American portfolio was trailing ALL of the indices by 4-7 points last month, it’s been a good month.

While my portfolio is loaded with many of the commodity names that have fallen hard in recent weeks, losses were offset by my large cash holding. Judging from the recent Barrons Roundtable mid-year article, some astute market watchers are expecting further weakness but as a value investor, I can not be overly concerned with market forecasts, even if they prove accurate. Investment decisions must be based on absolute value criteria … if markets should afford better (lower) pricing later, all the better for us.

Don’t get me wrong, I still regard markets as mostly overvalued, even with this recent minor correction. But there are patches of value available, most notably Cisco Systems (CSCO), a position I’ve bolstered in recent weeks. I have also entered a China small-cap arbitrage play in Chemspec International (CPC). Despite these purchases, cash remains at 25% of available capital. If further opportunities arise, my cash holding will continue to shrink.

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