Monday, January 01, 2007

Portfolio December 2006

The actively managed (AM) portion of my portfolio is dominated by precious metals, hence it was no surprise that it went down with gold and silver to a tune of -2.95% in December. The asset allocation (AA) portion kept up well with the general market and was up 1.03%. I’ll do a more comprehensive analysis of the full year results in the coming week so will skip some details here.

Click to enlarge

Major Transactions
12/1-12/7 Shorted CFC, FXI, bought QID, stopped out of all three, ouch!
12/12-12/21 Shorted EWM, small profit 12/7 Bought Jan 97 straddles on FXI, closed out the calls on 12/22 to turn an overall profit. I’m still holding the puts.
12/28 Sold PWI, PDS to take losses and bought PVX, ERF, AAV
12/28 Bought FAX
12/29 Bought Mar 145 straddles on SPY

As mentioned earlier, I sold PWI and PDS to take the short term losses but also picked up ERF, PVX and AAV. I think the bad news have pretty much all come out for these CANROYs and have my sights on PGH and FDG as well. Recent Canadian political development increases the likelihood of an early election which should be taken as positive. More on this later.

Portfolio Realignment and Future Actions

  • I rebalanced our 401(k) accounts. It’s something I do at least annually. I increased the large cap weighting somewhat, added a little REITs (I had none previously), but otherwise tried to maintain a 30% domestic, 30% international, 30% fixed income and 10% commodities allocation. My current bond weightings a bit light after the latest reshuffling so I’ll be looking to add more FAX to the portfolio.
  • I decided to remove the bullions from the portfolio statements since I never intended to trade them. They are truly something to be put away for a long time. Next month’s summary will show a debit from the AM accounts equaling the amount of bullion at the end of the year. Moreover, I will separate CEF (Central Fund of Canada) from the mining equities.
  • Both my wife and I contributed $4000 to our IRA accounts for 2006. The money will appear in next month’s summary.
  • I plan to substitute PCRDX with DBC in view of the better performance and lower fees of the later.