Wednesday, June 06, 2007

Portfolio May 2007

May was another good month for the overall stock market. The S&P gained3.4% and emerging markets (EEM) again led the pack at 4.9%. So much for sell in May and go away! My portfolio on the hand, continue to underperform. The AM accounts gained 1.27% and the AA accounts 2.25%, leaving the overall portfolio ahead by 1.78% for the month. Actually this is not so different from the 1.82% gain seen the benchmark combination of SPY + IWM + EFA + EEM + AGG.

I don’t sound overly concerned with this underperformance and I am not. One thing is that the PMs continue to be under pressure in May; however, the HUI finally broke the down trend last week and I expect some good times ahead. My performance also suffered from two losing stocks that I didn’t manage properly and let the losses ran away. I have now reduced them to acceptable levels and I’m quite happy with the rest of my position.

The 401k account with my former employer was at AllianceBernstein and I don’t have much good to say about that plan. The transfer to my self-employed 401k at Fidelity was finally completed this month and I have deployed the funds already. Since the old funds were sitting 100% in treasuries I anticipate a boost in returns going forward. The commission at Fidelity was a bit high ($19.95) at my equity level, but I have the best no-load mutual funds, stocks and ETFs at my disposal and it sure beats mutual funds that charge 1.5% or higher.

In the mean time, the value of the portfolio has been growing from exercising my company stock options. This task should be completed in another month or two. I should also point out that due to the size of the portfolio a substandard month like May still saw a net dollar gain of $12k.

I’ve been seriously revamping my portfolio which was suffering from a lack of strategic focus and discipline. I will devote the next couple of posts to what I have done. Stay tuned.