January 2012 – Performance & Comments
As to be expected, with the Benchmark performing 8.40% in January, the Portfolio underperformed significantly with only +3.45% in January. Since inception (01.01.2011) the portfolio is now down only -0.74% against -6.59% in the Benchmark, leaving us with a outperformance of 5.86% absolute since the beginning.
Transactions
As you will see, I am still selling Frosta and Westag, however due to the low volumes and my restriction of max. 20% VWAP volume, both postions stil appear in the list but with smaller wieghts than before.
On the buy side, I managed to buy 1.8% of the DJE fund and starting yesterday already 1.11 % Piquadro with a corresponding short position in the Ishares FTSE MIB.
Cash quota is ~9.80%, so close to target. Gross investment quota is ~110%, net ~100%.
January comment
As expected, Europe did not end up in Civil war already in January and with the new year starting, money flowed back into the stock market. I could have positioned the portfolio maybe more aggressively towards a European rebound, but from a strategical point of view I am not a big fan of market timing. I simply doubt my ability to generate added value through market timing.
Current portfolio as of January 31st:
| Name | Weight |
|---|---|
| Hornbach Baumarkt | 5.1% |
| Fortum OYJ | 5.0% |
| Magyar Telekom | 4.9% |
| AS Creation Tapeten | 4.0% |
| Westag & Getalit VZ | 2.1% |
| BUZZI UNICEM SPA-RSP | 5.6% |
| Autostrada Milano Torino | 4.6% |
| EVN | 3.3% |
| Walmart | 4.4% |
| WMF VZ | 3.8% |
| Tonnellerie Frere Paris | 3.2% |
| KSB | 2.5% |
| Vetropack | 3.0% |
| Total Produce | 4.5% |
| Frosta | 0.9% |
| OMV AG | 2.2% |
| Sto AG VZ | 2.3% |
| Nestle | 2.2% |
| Piquadro | 1.1% |
| Drägerwerk Genüsse D | 7.2% |
| IVG Wandler | 2.4% |
| WESTLB 6.9% | 5.6% |
| DEPFA LT2 2015 | 3.2% |
| AIRE | 5.1% |
| HT1 Funding | 4.5% |
| EMAK SPA | 6.2% |
| DJE Real Estate | 1.8% |
| Short: Kabel Deutschland | -1.9% |
| Short: Green Mountain | -1.9% |
| Short: Dräger VZ | -6.0% |
| Short Ishares FTSE MIB | -1.1% |
| Terminverkauf CHF EUR | 0.2% |
| Tagesgeldkonto 2% | 9.8% |
| Summe | 100.0% |
| Value | 64.8% |
| Opportunity | 36.2% |
| Short | -10.7% |
| Tagesgeld | 9.8% |
May I ask which approach you have choosen to implement the shorts on Kabel Deutschland and others? Do you employ warrants? If so which maturity and strike did you choose?
Cheers.
#drella,
no warrants, either CFDs or “real” shorts. Warrants are usually very unattractive from a pricing point of view.
MMI