The portfolio lost 0.5% for the month of June, bringing the year-to-date return to 3.7%. This is about what we'd expect from a portfolio that is de-levered to equities in a month the S&P lost about 2%. Our call on US Treasuries continues to be wrong, however. Over the more than two years we have been short longer-dated treasuries, we have lost a total of 5%. Somehow, it doesn't feel a high price to pay for some measure of insurance against the inevitable inflation that will result from money printing.
* We report the percentage gain or loss during a month in an additive sense for ease of comparison, however the year-to-date returns are reported as a chained series. As the total return become greater, and as inflows have an effect on the portfolio, the two will diverge. Adding up the monthly returns for the year may not give the precise total return.
9 Aug 2011
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