Our Updated Performance Data

by Wayne Ferbert on May 23rd, 2013

We have updated our performance data here on our blog. It is now current thru December 31,2012. It represents all of the investable assets of one of the author's that has been investing using the Buy & Hedge approach for over 90% of his investable assets.

In general, 2012 was a very good year - despite the cost of hedging in an up market. Basically, the reason these accounts so dramatically out-performed the S&P 500 in 2012 was that the account used credit spreads to control interest in the S&P500. With the cash that was available because of the credit spread, the author invested in high yield bonds and Municipal bonds.

The rally in the bond market in 2012 and the dividend return helped to cover the cost of being hedged - and then some.

Here is the link to the spot on this web site where we post our performance returns. In addition, we are excited to announce that we will start to post our results monthly now - starting with the end of May 2013!

Also, here is the chart and performance disclaimer below:

Chart Description: Chart calculates the Time Weighted Returns for the Author's Portfolio for the Time Period indicated. The Time Weighted Returns are calculated using GIPS standards. The S&P 500 ETF is symbol SPY and the dividends are always re-invested back in to the SPY ETF upon the ex-Dividend date. The chart multiplies $10,000 times the Time-weighted return percentages to show the growth of $10,000 invested in the indicated strategy. The author's GIPS time-weighted returns were calculated using every investment account the author managed himself with the exception of his 401k which had investment options that were too limited to hedge effectively. As soon as the 401k was transferred to an IRA account controlled by the author, then the returns from that account were included in the time-weighted return from that date forward. Further, the author stipulates that one other account that is not hedged is the only account that the author controls that is not included in these returns. That account is invested in alternative strategies and represents less than 5% of the author's total investable assets.

Performance Disclosure:
  • Performance results are presented net-of-advisory fees and reflect the reinvestment of dividends and capital gains. Past performance may not be indicative of future results. Therefore, no investor should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.
  • All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals may materially alter the performance of your portfolio.
  • Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.
  • Historical performance results for investment indexes and/or categories, generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results.
  • Economic factors, market conditions, and investment strategies will affect the performance of any portfolio, and there are no assurances that it will match or outperform any particular benchmark.

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