Q1 ’08 Portfolio Review

I am pleased with how the portfolio held up in the first quarter of 2007. I have completely avoided financial and “consumer discretionary” stocks – both of which were big losers in Q1.

My investments are focused in areas that are working: energy, agriculture, mining/materials. I am content with my 44% cash position and 9% gold position. I am also staying disciplined with my sell strategy: sell anything in 15-20% loss territory. This has saved me from blowups in the past and also helps to reduce taxes.

Changes to the Portfolio:

Going Short China: On 4/3/08, I bought FXP (ProShares UltraShort FTSE/Xinhua China 25) at $78.56 per share. I am a short-term bear on China; FXP goes up when Chinese stocks go down. FXP also has embedded leverage, which explains some of the volatility.

Buying Chip Stocks: I have bought a few deep-in-the-money calls on the SMH and Intel.

*I funded these purchases by selling some losing stocks, generating a ST capital loss in the process.

Thinking About Financials: I plan to dip my toe in the financial services sector through purchasing shares in a high quality bank. I might balance it out with a position in SKF (Proshares UltraShort Financials).

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3 Responses to Q1 ’08 Portfolio Review

  1. […] Update to Q1 Portfolio Review Q1 ‘08 Portfolio Review […]

  2. Mike says:

    Okay, I may be asking for a little much here, but can you provide your readers with a breakdown of quarterly performance by sector? ….maybe add overall sector performance and the performance of your stocks (aggregate) in the sector. Might be interesting to check out.

    What do you think? Hope things are well.

  3. Elric says:

    A simple and inetillgent point, well made. Thanks!

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