For the month of February, our portfolio returned -1.75% compared to a return of 2.33% for the S&P500. Our portfolio underperformed the S&P500 by 4.80%.
Year to date, we are down 1.35% compared to a gain of 5.88% for the S&P500. That an overall under-performance of 7.23%. We have been taking some defensive position in the last few months with higher than normal cash position (close to 20%) and a small hedge with S&P500 put options. As the market keeps going up, we have been trailing the market. As I have mentioned before, we remained focused on the long-term and try not to get carried away with short-term performance in either direction.
Since we are under performing, let’s start with the stocks that lost the most. Cisco (CSCO) was down 12.25% for the month after releasing disappointing quarterly numbers. Western Digital (WDC) was down 10.11% and after reaching a 52-week high in January, Aceto Corp (ACET) was down 7.9% in February.
One of our holdings that did well in February was Archer Daniels Midland (ADM). After going up 8.61% in January, it kept it’s pace with a gain of 13.8%.
Sold FRD at $9.5: for a gain of 64% (short term and long term)
Bought more CSCO at $19: We think it’s a good value. Our average price is $19.48 and it makes up 11.8% of the portfolio (3rd largest holding behind GILD and AMN)
Bought more DNDN at $32.5: Let’s hope Provenge therapy achieves the blockbuster status! Once they open up all the facilities this year, we will get a realistic idea of it’s revenue. Our average for DNDN is $35.02 and it is the 5th largest holding at 7.63%.
We end February with a Cash position of 16.56%.
Our partnership NAV for the month ending February, 2011 is $12.69.