Sunday, October 3, 2010

Performance Review: Net Payout Portfolio

The Net Payout Portfolio continues to perform at an exceptional level outperforming the SP500 by an average 6% per year. More importantly though is that the portfolio does this without taking on any extra risk. The Beta of the portfolio (see below) over the last 2 years has been 1.01 or consistent with the SP500 in general. Otherwise, without accepting any additional risk then being in the SP500 your getting 6% more return per year.

The major benefit of investing in Net Payout Yield stocks is that it automatically forces an investor to sell high and buy low based on the signals provided by corporate insiders regarding a companies balance sheet and income prospects. When a Board of Directors pays a big dividend or buys back a bunch of stock, then they are signaling to the market that the stock is undervalued compared to what the market thinks. The beauty of the portfolio is that it requires limited position moves, hence expenses, and very little detailed analysis of companies. It just requires that an investor listens to the cold facts and ignore the maniac gyrations of the market.  

In a few weeks, this option will be available on Covestor.com providing a great vehicle for investing retirement money or just money looking for consistent excessive returns.

Below data has been copied from the virtual portfolio managed on Marketocracy.com over the last 2 plus years. Results shown assume expenses up to 1% higher then what will be charged to manage a individual account or via Covestor.com. So take the Since Inception or Annualized returns and add 1% to get the expected returns. See the information under the 'Portfolio Management' section in the right hand column for all the links and details about all the portfolio options and links to real and virtual portfolios offered by Stone Fox Capital.

Contact us at stonefox27@ymail.com.


alpha/beta vs. S&P500 right curve
   
Alpha 4.75%
Beta 1.01
R-Squared 0.97


RETURNS
Last Week -0.17%
Last Month 6.25%
Last 3 Months 13.95%
Last 6 Months -3.33%
Last 12 Months 17.63%
Last 2 Years 17.26%
Last 3 Years N/A
Last 5 Years N/A
Since Inception 6.63%
(Annualized) 3.00%
S&P500 RETURNS
Last Week 1.94%
Last Month 6.26%
Last 3 Months 12.67%
Last 6 Months -1.72%
Last 12 Months 13.58%
Last 2 Years 3.46%
Last 3 Years N/A
Last 5 Years N/A
Since Inception -4.28%
(Annualized) -2.00%
RETURNS VS S&P500
Last Week -2.10%
Last Month -0.01%
Last 3 Months 1.29%
Last 6 Months -1.61%
Last 12 Months 4.05%
Last 2 Years 13.80%
Last 3 Years N/A
Last 5 Years N/A
Since Inception 10.91%
(Annualized) 5.00%    

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