Monday, November 5, 2007

Portfolio A1 Stretches Margin Over SPX to 9.6%

Continuing the strong bounce off of the mid-August lows, Portfolio A1 exited the week with fewer scars than that of the benchmark S&P 500 index. Now up 13.3% since the February 16, 2007 inception, the portfolio’s performance compares favorably to a 3.7% gain in the SPX. In spite of the recent performance, as I have discussed previously, I will retire the 100% mechanical Portfolio A1 at the end of the calendar year and replace it with a more complex portfolio that incorporates some discretionary thinking and more active management on my part.

This week one marginal performer, Shanda Interactive (SNDA), the Chinese internet company, is being dropped from the portfolio and will be replaced by StatoilHydro (STO), the state-owned Norwegian oil giant.

There are no other changes to the portfolio this week.

A snapshot of the portfolio is as follows:

2 comments:

Andy said...

Hi Bill

I hope all is well.

Have you thought about using a short portfolio in P123, if the market does turn south for an extended period of time? If so, can you tell me which portfolios you've looked at?

Thanks

Bill Luby said...

Hi Andy,

I have yet to come up with a long-short or short-only portfolio that I am happy with in P123. Search the message boards to get the benefit of the efforts others have put in on this subject.

-Bill

Cheers,

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