Performance Tracking November 2017

For calculation methodology see this post.

November was an even better month than October which was a mild surprise to me. I had expected a small pull back but the market roared back with $SPY gaining 3.06% and the 60/40 1.77%. My portfolio had been outperforming significantly but gave back ground in the last couple of days when the FANG’s retreated. Still the total portfolio and the active accounts gained 4.08% and 6.29% respectively. Both were new records 2nd month in a row. The YTD returns have further distanced from that of $SPY, while the active accounts have overtaken $SPY since blog inception.

Breaking down individual components: cryptos again were the star of the month contributing about 1.6% as BTC climbed over the $10k mark; options delivered another 1.1% or so; the individual stocks lagged SPY, 2.9% vs. 3.06%, due to the large cap tech stocks; fixed income CEFs faced some difficulty, however adding at the bottom and partial recovery resulted in a positive month, 0.05% vs. -0.15% for $AGG. PMs continue to be lack luster which I now expect to deteriorate into the end of January.

Transactions that haven’t been covered in weekly wraps include closing the tiny $SOGO position received in its IPO, and closing Gilead to add to $JNJ. The latter was really about reducing the total number of individual stocks, which currently stands at 26, and having a larger position in each.

End of Month Portfolio Composition

PMs were at 9.5%, equities 56.1%, fixed income 22.7%, cash 5% and other 6.6%. The “Other” category was composed of cryptos 3.9%, 3X ETF 0.4%, and (market value of) options 2.3%. Exposure from options equaled 66% of the total portfolio, or a leverage ratio of 28X. Lower leverage ratio was a result of gains in $QQQ and closing $GILD positions. Total portfolio equity exposure was at 122%.

Comparisons

AllocateSmartly tracks over 40 different tactical asset allocation strategies. In November my total return of 4.08% would have trounced the pack whose highest return was 3.06%, matching that of $SPY. YTD the first and second ranked strategies are at 24.72% and 20.25% respectively, vs. 24.05% and 34.84% for my total portfolio and active accounts. My portfolio remains leveraged long equities and I expect the out-performance to continue as long as this bull market lasts.