February 2012

ScIoN Fund (mid-long term)


YTD: 12.64%
Benchmark (PSEi): 11.4%

The following is the composition of my trading portfolio: (as of Feb 29, 2012)

February saw the rise of FDC and I hope that it will still continue.  With its book value still far below market, plus the planned IPO of EWB, I am still holding this stock perhaps before or after a planned secondary IPO or private placement will be announced.

I have repositioned my portfolio a little bit away from mining stocks (PX, LC/B) and slowly diversified to other sectors.  My exposure to mining is now limited to MARC which seems to be a good prospect as based on its report on earnings and operations.

Oil has now been an issue due to the news on Iran. I choose PXP to be a good mid-long term stock.  I just hope that they would no longer require equity financing as it would shake down the stock's market prices.  A lot of companies had been undergoing private placements lately, and the market has not responded too well on such kind of news, at least for the short-term.

Unexpectedly, TA announced another SRO this year which dragged down the prices; thus, hitting my sell indicators.  Seems like TA is maintaining a debt-capital ratio of around 40:60 (max).  I still like this stock since it is both Power and Oil play.  Although I expect market prices to go down as effect to the news on SRO.

February was a good month as it extended gains.  My portfolio reached a max YTD of 15% until profit-taking happened during the latter days of the month.  I think we'll be under a consolidaton phase for 1-2 more weeks before we get to see any action.  Good thing I'm 20% cash right now, I'll practice range trading and will also start accumulating for the strong index stocks.

AJC Fund (short term)

YTD: -2.97%
Benchmark: -1.4%

Much of the loss was attributed to the sudden SRO news on TA which caused it to drop to as low as 1.12 from 1.31.  Fundamentals of TA is still good and intact, however, my strategy for the AJC Fund would be more on short-mid term unlike the ScIoN fund which is mid-long term.

The run-up of stocks was for those who already had positions at the end of January.  Positioning in February was a bit tricky, a lot of setups became bull/bear traps.  For now, I have positioned the fund into 30% MARC, short term on SLI (15%) and the rest on cash.  There are still oddlots on EDC and BEL which I can't dispose, so I'll just leave them there for now.

The Benchmark portfolio is based on the original portfolio when it was handed over to me.  Assuming if I did not change anything, YTD is at -1.4%.

Personal Finance (Start of 2012)

As part of my quest in properly managing my finances, I aim to monitor my whole personal portfolio and see to it that I am properly diversified.  I have created this composition chart for easier visualization.  I don't have any fixed assets (real estate/ condo) nor have a business portfolio yet.  Basically, my personal portfolio is wholly an investment portfolio.

Components:

ScIoN Fund - this is my trading portfolio wherein I invest and trade on Philippine equities.  Right now, YTD performance (>1 month) is at 12%.  If I am able to consistently outperform the PSE index and most MF/UITFs, then I'd consider increasing my allocation of funds here.

Equity Managed Funds - A larger chunk invested in professionally managed Funds such as BDO Equity (YTD: 6.5%)and ATR Kim Eng Mutual Fund (YTD: 1%).  I only plan to place funds here when I am bullish; thus, only for the short term.  Clearly, ATR MF is underperforming that I plan to shift funds from it to somewhere better.

Bond Funds - A safety measure for me as I have already invested almost 70% of my portfolio into equities.  Bond Funds will provide a hedge against too much volatility in the market.  Bond Funds are good for medium term investments which can give around 5-10% annual yields.  (YTD: 0.4%)

Money Market - In terms of liquidity, this is the best alternative for me than putting money into Time Deposits/SDAs or worse, Savings accounts which only give negligible interest rates.  Although right now,  allocation is at 0% since I am still transitioning funds into the other accounts.  Most of my money in the bank is also in BDO, and it is comparatively harder to shift funds from savings accounts to their other bank products such as UITFs.  Unlike with BPI, they have done a great job with their online investment capability.

Savings - My main bank is currently BDO since it's very near my current residence and also due to sentimental reasons (been with PCI Bank since the late 90s).  Convenience and availability is OK, but innovation is lacking.  There is a chance I might have a major shift to BPI due to more efficient systems and processes such as their online banking.  Savings account will only be maintained for emergency and liquidity purposes; thus, I plan to minimize exposure here.

January 2012

ScIoN Fund

The following is the composition for my trading portfolio as of Feb 3, 2012:

I am happy to say that except for FDC which I still have a cost at 3.94, all of the other stocks are on a positive.  The Philippine Index is doing good that only a few funds have exceeded its current 8.81% YTD gain.  The ScIoN fund registers 9.01%, just a few notches above the index'.

AJC Fund

Starting this February, I will also hold another portfolio which is being handed over to me by a friend.  He was not able to monitor his stocks and was already around 12% down.  I'll be rebalancing his portfolio which can take a few more trading days to sell the losers and hopefully buy the winners.    He has already lost a total of around Php60,000 and it would be my pleasure to turn this loss into a gain.    We're in a bullish market nowadays, and that's why I'm confident that I can do it! :D

This is his portfolio when it was given to me.  Average price is his cost, while Market price was the current price during that day.



As of Feb 3, 2012,  I have already sold APC@.72 and BEL@4.73.  Bought TA@1.31.

Portfolio down by 0.76% relative to its market value on day 1.