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Performance - Week Ending 05/31/13

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June 01, 2013 – Comments (0) | RELATED TICKERS: ABFS , MXWL , GRA

This week’s Performance Report is going to be short.

The markets backed up and dropped quite a bit of mud the past two days, and this run for the roses took place late in the day both days.

I have taken a good natured ribbing since the beginning of the year because my performance has not come close to the performance of any of the indices I track every week.

In my defense, I have explained that there is no way an individual equity portfolio of 25 stocks can perform the same way an index performs over the short term.

The main reason for this is there simply is not as many dollars moving into and out of my portfolio as there is an index fund.

I have noted that eventually the markets would start to correct, and I have said the trigger for that correction will be the Fed as it starts to slow its efforts to keep the economy propped up.

I had assumed that would have happened several weeks ago when the initial announcement was made, but it didn’t.

I guess the broader markets finally read the memo.

Regardless of what the Fed does I stand behind my investment strategy, which is to put in all the effort needed to find great companies, buy them when they are on sale, and hold them for a very long time.

Hi. My name is Wax, and I am an individual investor, a working class investor, just trying to do the best I can in a world that was never intended for investors like me.

Throughout the course of the week, I post a Daily Alert, which is my review of an individual equity.

The other thing I do, is let the world watch as I manage the The Wax Ink Portfolio.

Perhaps watching me make the mistakes I make will help other blue collar investors avoid the investing pitfalls that seem to find me.

Markets
The Wax Ink Portfolio closed up 1.1% for the week. By comparison the Dow was down 1.2%, the Nasdaq was down 0.9%, the S&P 500 was down 1.1%, and the Russell 2000 was unchanged.

The Volatility Index, commonly known as the VIX, was again the big winner for the week, closing at 16.30, up 16.5%. The VIX is up 7% for the year.

Year to date, the Wax Ink portfolio is up 11.4% while the Dow is up 15.3%, the Nasdaq is up 14.8%, the S&P 500 is up 14.3% and the Russell 2000 is up 15.9%.

Breakdown
The portfolio breakdown remains the same, with 70% of the portfolio in equities, 30% of the portfolio in cash, and 0% of the portfolio in bonds.

Research
Again this week, I paid little attention to the Research List as there just wasn’t any time.

As I have been saying, changes are coming, just as soon as I can figure out what they are.

Holdings
This week's moving on up stocks were trucking company Arkansas Best Corporation (Nasdaq: ABFS), up 8%, ultra-capacitor manufacturer Maxwell Technologies, Inc. (Nasdaq: MXWL), up 7%, and specialty chemical company W.R. Grace and Company, Inc. (NYSE: GRA), up 6%.

This week's pile in the bunch bowl stocks were iron ore company Cliffs Natural Resources, Inc. (NYSE: CLF), down 11%, engineering company SAIC, Inc. (NYSE: SAI), down 5%, and garage door and telephone headset maker Griffon Corporation (NYSE: GFF), down 2%.

Not Performing
The top non-performers remain communications equipment company Tellabs, Inc., down 62% since being added to the portfolio, iron ore company Cliffs Natural Resources, Inc., down 46% since being added to the portfolio, and garage door/telephone headset maker Griffon Corporationdown 36% since being added to the portfolio.

Wax


Wax Ink is a baseline equity research company comprised of individual investors NOT licensed or registered with ANY government agency.

Copyright © 2013 Wax Ink

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