My portfolio’s in excellent shape going forward


 

Author: Eric Steiman

Covestor model: Undervalued Opportunities

Disclosure: Long GOOG, AAPL, AMZN, TSLA, SODA, WFC, VHC

The past few months have been extremely volatile, and I am working to tread these investment waters. In August my portfolio underperformed its benchmarks, but since its June 1, 2011 inception and as of end of day September 13, the model has outperformed both the S&P 500 and the Dow Jones Global Index. You can see that the portfolio did particularly well in late June and July, but struggled in August, during the big market fall.

IMAX has been a big loser. I have tried to sell and buy lower but the stock has taken a beating. The month of August was not been good for bullish market participants (which I am).  Losing positions were Bank of America, SodaStream, Fusion-IO, Google, and Tesla Motors.

On the plus side, I have made two good trades in Wells Fargo and Amazon.

Despite this volatility, I believe the portfolio is in excellent shape going forward and believe that the market will bounce at recent lows on the S&P 500. I head into the next quarter with positions (as of 9/12) in Google, Apple, Amazon, Tesla Motors, Wells Fargo, and SodaStream.

I have also added a small position in VirnetX Holding (AMEX: VHC), a speculative stock. The company controls many patents for 4G mobile phones and could be a takeover candidate in the coming months.

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Clearbrook Capital Advisors
Clearbrook Capital Advisors
Clearbrook Capital Advisors LLC is a registered investment advisor based in Massachusetts. The firm seeks to employ an investment strategy that balances bottom-up stock selection with an evaluation of general market conditions. Eric Steiman is the founder and the Managing Member of Clearbrook.

Clearbrook believes in balancing the fundamentals of bottom-up investing against the backdrop of stock market cycles. Clearbrook applies methods of technical analysis in its security selection and market analysis. Generally, the firm seeks investment in companies whose securities it believes are undervalued by the market and can be acquired at a discount to its estimate of intrinsic value. Additionally, Clearbrook will engage in short selling opportunities if it feels certain securities or the market as a whole may be set to decline.