Monday, October 15, 2007

Portfolio A1 Gains 9.8% in Week

The highly volatile Portfolio A1 roared past the benchmark S&P 500 index last week, with a stunning gain of 9.8% on the week. The gains bring Portfolio A1’s cumulative return since the February 16, 2007 inception to 12.6%, which is also 5.3% greater than that of the SPX during the same period.

Two stocks were responsible for most of the weeks gains: DryShips (DRYS) was up 23.1%; and The Mosaic Company (MOS) added 17.7%. The gain in MOS brings the fertilizer producer’s cumulative return to an eye-opening 71.4% in the eight weeks it has been in the portfolio – far and away the best performer in the portfolio to date.

It has been a dramatic roller coaster ride for this portfolio over the past three months, which makes this a good time to reiterate that the purpose of this portfolio is to aggressively maximize capitalize gains in the context of a concentrated, high risk strategy. One glance at the equity curve tells the story.

There are no changes to the portfolio this week.

A snapshot of the portfolio is as follows:

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