Tuesday, February 13, 2007

Portfolio January 2007

Wow, having a kid is everything everyone said it would be! While I'm not getting a lot of sleep these days, I do plan on keeping this blog going. I figure I better get the January summary out of the way before this month comes to an end.

January started on an uneven footing. PM stocks continued their descent earlier in the month although recovered nicely towards the end. Due to a spell of unseasonably warm weather in the Northeast and higher-than-expected inventory built-up, crude temporary tested its 200 week moving average around $50. Oil bears wasted no time to parade CNBC/Bloomberg to peddle their vision of $20-30/barrel oil only to see crude price snapping back to the high $50's.

For the month, my portfolio lagged the general market which advanced 1.5-1.8%. I managed to stay positive with a 0.71% for the actively managed (AM) accounts and 0.91% for the asset allocation (AA) accounts. My AA accounts stayed close to the benchmark portfolio composed of SPY, IWM, EFA, EEM and AGG that gained 0.92% in January. I'm currently fully long with a tiny number of covered calls. After an active January, I foresee a coming lull in trading activity.

Major transactions
I walk the talk as far as investing is concerned. I wrote about CanRoys, NAT, ITA in the past month and have positions in all of them. The specific CanRoys include AAV, PWE, PGH, PVX, ERF and FDG. I also started writing covered calls on them to generate additional income.

I won't repeat my transactions in the PM sector here. The other names I picked up were BG, ERH and ACG. BG (Bunge) I mentioned before in Missed Opptunities under the section of food/water. ERH and ACG are closed end funds that are bond alternatives with high yields which I'll write more about in the coming month.