Performance Review: Hedged Growth Up 20%+ as First Year Comes to a Close
Stone Fox Capital originally started the Hedged Growth Portfolio on 10/1/08 to provide a more structured asset allocation that included at least 1/3 of the portfolio to be either short or in cash. This portfolio has performed above our wildest dreams having an annualized return of over 28.5%. Even considering that the tracking vehicle of marketocrazy.com doesn't allow short sells so the only instruments for executing that strategy are short ETFs.
What is remarkable about this portfolio is that it has kept up with the market with only 2/3s of the portfolio long the last 6 plus months. Stone Fox Capital has been right on to have most of that potential short exposure in cash during this period. We also we're pretty fortunate to have a decent amount of short exposure during the crash back in Oct and Nov of last year.
Some of the largest positions such as Apple (AAPl), CSX (CSX) and Baidu (BIDU) have had exceptional returns. In the case of BIDU, the stock is up 211% in this portfolio. Thats the beauty of this portfolio. It has such stable dividend paying stocks such as Bristol-Myers (BMY) and Verizon to bring in cash and stability, but then it also has the ability for growth in a stock like BIDU. That flexibility has helped this portfolio greatly outperform the market over the last 12 months in what has been a very wild time period.
With just 6 trading days left in Sept, this portfolio is up 23% intraday since inception while the market is down roughly 5%. Now if we can only repeat that performance over the next 12 months.
As always, you can follow this portfolio on a daily basis at marketocracy.com.
What is remarkable about this portfolio is that it has kept up with the market with only 2/3s of the portfolio long the last 6 plus months. Stone Fox Capital has been right on to have most of that potential short exposure in cash during this period. We also we're pretty fortunate to have a decent amount of short exposure during the crash back in Oct and Nov of last year.
Some of the largest positions such as Apple (AAPl), CSX (CSX) and Baidu (BIDU) have had exceptional returns. In the case of BIDU, the stock is up 211% in this portfolio. Thats the beauty of this portfolio. It has such stable dividend paying stocks such as Bristol-Myers (BMY) and Verizon to bring in cash and stability, but then it also has the ability for growth in a stock like BIDU. That flexibility has helped this portfolio greatly outperform the market over the last 12 months in what has been a very wild time period.
With just 6 trading days left in Sept, this portfolio is up 23% intraday since inception while the market is down roughly 5%. Now if we can only repeat that performance over the next 12 months.
As always, you can follow this portfolio on a daily basis at marketocracy.com.
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