Staying long with conviction

Author: Dan Plettner

Covestor models: MLP Direct Ownership, Taxable Income, Well-Intentioned Activism, Long/Short Opportunistic, Core

Disclosure: Long GCH

Under-invested portfolio managers are contemplating whether to engage in a trading strategy called  “window dressing” to improve returns or to demonstrate resolve by staying on the sidelines.

Not me. I have stuck with my investment style, and frankly, I’m more interested right now in whether my favorite baseball team earns the top playoffs seeding than which way window dressing closes the market quarter.

Analysts and commentators predicting the death of equities are only providing a favorable backdrop for the broad market. Another round of quantitative easing by the U.S. Federal Reserve has added fuel, too..

I recently published an article about one of my holdings, Greater China Fund (GCH). To me, this holding presents as a case where a bad board of directors appears to be nearing the end of their capacity to harm shareholder value.

You can go to the Performance Detail charts to view the 3rd Quarter performance across my models. (MLP Direct Ownership , Well Intentioned CEF Activism, Long/Short Opportunistic, Taxable Income, Core).

The investments discussed are held in client accounts as of September 24, 2012. These investments may or may not be currently held in client accounts.The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.

Certain of the information contained in this presentation is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. Covestor believes that such statements, information, and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.