Overall portfolio return: 72% this year

It’s been a great year for my US portfolio, which sadly is relatively small as most of my investments go into small private companies, with some to GMI.

Here’s the return to date (green) versus the S&P500 (Blue).

my us portfolio return this year

That green bar hits 72%, though I’m fairly sure there is an error in eTrade’s calculations, and it is closer to 65%. Regardless – it is a great result to date versus the S&P500, which shows a return of just 1.58% for the calendar year.

What is pleasing is that all of my picks have worked out in both directions.

With a long/short portfolio you expect that losses in one stock are more than compenated by gains in the other stock. So MSFT and AAPL may both go up, but I’m betting that AAPL goes up more.

Well this year all my bets have worked – AAPL, eBay and eTrade went up, and EQR and MSFT went down. There was, of course, also some market timing (which in theory doesn’t work:-) involved.

This chart shows where the portfolio return came from. As you can see Apple and eBay contributed the most, but every stock, long and short, played a part. The top four were about equal in dollar commitment, while eTrade is a late addition, and doing very well.

my portfolio

Of course I’m still waiting for the hammer to fall. For that reason I’m about 30% in cash right now, which means that even if some of the more volitile options go valueless that I’m not going to lose everything.

It’s been a fun year so far – stay tuned for the next update. Will it be up or down??

<update: I couldn’t stand the ETFC volatility – and their portfolio of mortgages and mortgage backed securities was just far too high for me to be a part of. So I sold all the ETFC shares pre-market on Monday for $5.05-$5.10 Last Friday afternoon they were $5.33, now they are $4.60.>

Published by Lance Wiggs

@lancewiggs

5 replies on “Overall portfolio return: 72% this year”

  1. That’s a massive return. BTW, do you use any optimizer (portfolio optimization tool) Lance for your portfolio management?

    Like

  2. Falafulu
    No I’m not using an optimizer – this chunk of my portfolio is simply a long/short on a few specific stocks. I’m looking for market inefficiencies rather than relying on CAPM etc.

    Do you have any suggested models?

    Like

Comments are closed.