Archive for November, 2008

Protected: ALERT – JULIANS PORTFOLIO

November 25, 2008

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UPDATE ABOUT THE NEW ALLOCATION

November 24, 2008

I know you are waiting for the new and simplified allocation I promised to provide, and in fact I have built it.

I’m still not willing however to come out with it, because these are really ugly markets. While even my new allocation is beating them by a wide margin since November 7th, its inception date (see below the performance), still it is showing a negative performance, and beating the market is not a great consolation if you’re losing money anyway.

So I think it’s prudent to keep on staying sideline for a while, as I continue to test and adjust the new allocation, waiting also for more normal conditions to return to the markets. Cashing out of all the Total Invested Capital at the end of October has saved us huge amount of money and there is no law forcing us to stay invested.

Just a thing: if you are not buying gold and silver now (the real stuff, as you know from my precedent writings there is a very good proxy that can be bought in the same way you buy a stock; consider also GDX, prudently), I really don’t know what are you waiting for.

Performance

Tentative New Allocation (since November 7th)  -8.75%

Benchmarks
S&P 500 -14.07% (same time span return)

Longleaf Partners Fund -19.45% (same time span return)
Sequoia Fund -15.63% (same time span return)
Third Avenue Value Fund -17.68% (same time span return)

(in US dollars, dividends & broker’s fees included, taxes not included)

CHANGES

November 1, 2008

UPDATE

Total Invested Capital 433.82 closing value

Performance since inception: -13.24%

Simpliciter portfolio 55.9 closing value

Performance since inception: -25.46%

Benchmarks
S&P 500 -37.47% (same time span return)

Longleaf Partners Fund -50.39% (same time span return)
Sequoia Fund -22.52% (same time span return)
Third Avenue Value Fund -45.27% (same time span return)

(in US dollars, dividends & broker’s fees included, taxes not included)

———————————————————–

We’ll consider all the Indexes of the Total Invested Capital liquidated at yesterday closing price. We’ll discontinue the Simpliciter portfolio too. You’ll get the performance in a few days.

The Julians and €uroIncome portfolios will keep on going, but will be updated quarterly.

A new and simplified allocation will substitute the Total Invested Capital.

Sorry, but exceptional times require exceptional decisions.