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.