As you recall, we ended Q2 with 18.74% YTD returns. Q3 turned out to be relatively eventful with several nice exits. Before we go into the details of the exits, let’s recap the quarterly performance to date for 2012.
| 2012 Performance, YTD | Q1 | Q2 | Q3 | Since Inception (Jul 23, 2009), cumulative |
|---|---|---|---|---|
| Value Stock Guide Portfolio | 15.18% | 18.74% | 33.62% | 125.01% |
| S&P 500 Index Price Returns | 12.00% | 8.31% | 14.56% | 51.00% |
At the end of Q2 the portfolio was 19.3% in cash. At the end of Q3, the cash position on the net has increased to 22.75%. Please note that in dollar terms, the cash has accumulated much more than what the percentages show as the portfolio has grew significantly during the quarter. The portfolio performance includes the cash drag.
Eventually I do want to put the cash to use but I am being very patient right now as several macro conditions indicate to me that stocks might become more attractive in the short term. If my assessment turns out to be right, cash will come in handy to scoop up new names. If it is wrong, well, cash never hurt anybody and the rest of the portfolio is carrying the weight admirably.
Q3 Exits
In Q3, we exited 2 complete positions and 1 partial as follows:
- HCII: Homeowners Choice was sold at $22/share to give us a 96.23% gain in 4 months of holding
- TUES: Tuesday Morning was sold at $6.26/share to give us a 71.18% gain in 6 months of holding, and,
- : This stock was partially sold (still hold the remaining) at $1.80/share to give us a 88.35% gain on the sold portion in 9 months of holding
We opened 3 new positions in the quarter, 1 of which is solidly in the money while the other 2 will need some time to work out.
Other news: I am keeping the Lifetime membership option available for some more time but it will close sometime this month.
