Portfolio A1 muddled through a difficult week in the markets, with losses of 7.1% in Tesoro (TSO), 5.3% in Rock-Tenn (RKT), and 4.5% in Terex (TEX) accounting for the bulk of the damage. As a result of the three hard hits, the portfolio’s margin over the benchmark S&P 500 index has fallen all the way from 4.75% to 1.70%. The coming week should provide a good test of the resilience of the portfolio’s holdings. Frankly, I would expect to see some changes if we don’t see signs of improvement in the options expiration week ahead.
There are no changes to the portfolio for the coming week.
A snapshot of the portfolio is as follows: