Trending value performance update (Aug 2013 port)

This is a simple house keeping post on a quant portfolio from last year. In the comments section of my post last year on the Trending Value portfolio I linked to a Trending Value portfolio I created as of Aug 9 2013 to help some readers compare holdings in their versions of trending value portfolios. The link to that portfolio in Google sheets is here. The portfolio I reference here is the TV2 FCF NA 50 tab. Below I update the one year performance for that portfolio.

First, the snapshot at the close on Aug 9 2014 from my FINVIZ tracking portfolio is below.

Trending Value Aug 9 2013 One Year Performance Aug 2014

First thing to note is that the portfolio lost 3 holdings during the year. It started with 25 stocks. There were 3 mergers/acquisitions during the year; SPRD, CGX, and ASI. Those need to be added back in to the portfolio at the merger or sell prices.

Second, and the most important portfolio change throughout the year was in ESI. On Feb 26, 2014 the US gov’t announced an investigation into ESI. That breaks rule #2 of the quant portfolio rules and the stock should have been sold from the portfolio. I waited a few days to do some investigating and sold ESI at $30.95, for a 4% gain. If the stock had been held  in the portfolio the loss would have been -71% as shown above.

Lastly, dividends need to be added to the capital gain returns shown above. The portfolio has a dividend of 1.24%.

I’ve added all these changes and return calculations to the original link for the portfolio.

All changes incorporated, the portfolio had a gain for the year of 17.7%, handily beating its closest benchmark the Russel 2000 which had a return over the same period of 9.8%. The SP500 returned 16% over the period.

Full Disclaimer - Nothing on this site should ever be considered advice, research or the invitation to buy or sell securities. These are my personal opinions only.

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3 Responses to Trending value performance update (Aug 2013 port)

  1. Kevin Daly says:

    I can’t tell you how much I appreciate and look forward to your post. Thanks….

  2. Jeff Mattson says:

    Nice work Paul, good catch with ESI. Did you find out right on Feb 26 about the investigation through an alert or you just happened to notice it in the FINVIZ news? hhgregg has also been my only poor performer. Hindsight is always 20/20, but I wish I had gone with your idea to do a Foreign V2 or TV screen.

    • libertatemamo says:

      I caught ESI manually on Feb 27th. Sold on Feb 28. I’ve started to use alerts now based on price and volume.


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