The portfolio gained 0.6% for the month of March, bringing our year to date return to -0.1%.* As the S&P rose 1.6% over the month, we are disappointed with our performance. Where did things go wrong? A big contributor was ongoing underperformance of China versus US stocks. China outperformance is one of our core positions, and it hasn't been going well lately. Outside that, performance was a mixed bag, with no notable great successes or losses.
* 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.
20 May 2010
13 May 2010
Small-C March 2010 Letter
The portfolio gained 3.7% for the month of March, bringing our year to date return to -0.7%.* It was helped by some recovery in the equity markets, in which we maintained a long position. Our investments in China began to catch up to the US market somewhat. Our single stock picks showed mixed performance - one volatile trade we liked, Toyota Motors, was up 8%, while our high dividend shares lagged the market. US Treasury yields increased slightly, while high-yield bonds made gains, so our hedged high-yield position performed well.
* 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.
* 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.
29 Mar 2010
Small-C February 2010 Letter
The portfolio gained 2% for the month of February, bringin our year to date return to -4.4%.* It was helped by some recovery in the equity markets, though we began cutting our levered long position.
* 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.
* 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.
Small-C January 2010 Letter
The portfolio lost 6.4% for the month of January.* This was due to an levered long in S&P equity.
* 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.
* 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.
Small-C December Letter and 2009 Review
The portfolio gained 2.1% for the month of December, bringing our year-to-date return to 15.6%.*
* 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.
* 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.
15 Dec 2009
Small-C November 2009 Letter
The portfolio lost 4.5% for the month of November, bringing our year-to-date return to 13.5%.* We are sorry to hand in such a disappointing setback, one which destroys months of steady performance and is close to the maximum total monthly loss we feel we can accept.
What happened? Mainly, the S&P gained 6.2% over the month, while we are short about half of our portfolio gross value. Our various equity longs, including China, generally underperformed the index. Gold had a pretty good month, trading up 12.8%, though we missed out on a part of that after closing our position. At a point where people seem to believe that gold can not possibly decline, we felt uncomfortable holding it any longer. Gold doesn't generate income, after all. Take an ounce of it, put it in a safe, come back ten years later and you still have an ounce of gold. Our bond portfolio didn't do much over the month, making a slight gain. Oil stayed flat as well.
Is it time to reevaluate our equity short? Yes - actually it is. The January barometer hasn't worked (so far) this year. Work we have recently seen indicates it is a good idea to be long into year end and through January, so we will be heading back to a long-equity stance. We still think our short rates position / long inflation position makes a lot of sense.
* 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.
What happened? Mainly, the S&P gained 6.2% over the month, while we are short about half of our portfolio gross value. Our various equity longs, including China, generally underperformed the index. Gold had a pretty good month, trading up 12.8%, though we missed out on a part of that after closing our position. At a point where people seem to believe that gold can not possibly decline, we felt uncomfortable holding it any longer. Gold doesn't generate income, after all. Take an ounce of it, put it in a safe, come back ten years later and you still have an ounce of gold. Our bond portfolio didn't do much over the month, making a slight gain. Oil stayed flat as well.
Is it time to reevaluate our equity short? Yes - actually it is. The January barometer hasn't worked (so far) this year. Work we have recently seen indicates it is a good idea to be long into year end and through January, so we will be heading back to a long-equity stance. We still think our short rates position / long inflation position makes a lot of sense.
* 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.
17 Nov 2009
Small-C October 2009 Letter
The portfolio returned 1.6% for the month of October, bringing our year-to-date return to 18.0%.*
* 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.
* 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.
Subscribe to:
Posts (Atom)