Sunday, August 23, 2009

Performance Review: Growth Portfolio up 84% Last 6 Months

With an 84% return in the last 6 months, the Growth Portfolio has out grown the SP500 by nearly 50%. Unlike most the 'experts' that you see on TV that have continually called for a significant correction or at least one of at least 10% Stone Fox has consistently expected the market to melt up similar to the melt down which would bring the market to at least the 1,200 level. A steep drop off like we had in October last year is typically followed by a similar rally.

Our favorite stocks in this portfolio have mainly been techs like Apple (AAPL), Baidu (BIDU), Millicom (MICC), and Riverbed (RVBD) along with Internation Growth plays like ICICI Bank (IBN), Gafisa (GFA), and US Steel (X) combined with our favorite financial recovery play in Hartford Financial (HIG).

Most of the stocks have seen major moves off the bottom, but for the most part they all still trade at discounts to most major valuations or substantially off highs. We expect all of the stocks to see more gains in the near turn as the market continues to rally. Until something changes we'll remain very bullish having added a small position in Liz Claiborne (LIZ) on Friday.

Overall the portfolio is still down 5.8% on a annualized basis which is disappointing yet satisfying that the portfolio has averaged a 12.5% return higher then SP500. We're continuing to look at ways to prevent the huge downside that happened in 2008. Though it provided the opportunities for the huge outperformance this year, it could've been so much better with some downside protection last year. In general though most of the firms that saved clients money last year failed to invest properly for the gains this year. In the end all 3 of our portfolios held up well in the downturn and have done exceptional in the recovery leading to outstanding outperformance.


RETURNS
Last Week 1.25%
Last Month 7.08%
Last 3 Months 26.22%
Last 6 Months 84.15%
Last 12 Months 2.08%
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception -7.98%
(Annualized) -6.83%
S&P500 RETURNS
Last Week 2.27%
Last Month 7.80%
Last 3 Months 16.33%
Last 6 Months 34.88%
Last 12 Months -17.48%
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception -21.19%
(Annualized) -18.34%
RETURNS VS S&P500
Last Week -1.02%
Last Month -0.72%
Last 3 Months 9.89%
Last 6 Months 49.27%
Last 12 Months 19.55%
Last 2 Years N/A
Last 3 Years N/A
Last 5 Years N/A
Since Inception 13.21%
(Annualized) 11.51%

No comments: