Friday, January 7, 2011

2010 portfolio summary


2010 performance summary
Our portfolio finished 2010 higher by 8.7% (9.4% without the subtraction of performance fees), outperforming our 6% annual hurdle rate, but underperforming the benchmark Straits Times Index's 13.4% gain. We are less concerned about our portfolio's underperformance over the past one year, but will continue to focus on picking undervalued companies for the portfolio in a prudent manner, without any regard for the Singapore stock market benchmark.

Cash holdings detracted
As of end December 2010, the portfolio held a cash position of 16.2% of portfolio assets, a fairly large percentage which weighed down on performance vis-a-vis the STI. The average cash position the portfolio held in 2010 was about 12%, and while we have no target cash level for the portfolio, our sizable cash holding is indicative of the lack of good investment opportunities we can find under current market conditions. We are also cognizant of the need to keep some powder dry to benefit from distressed market conditions, instead of watching in envy while others scoop up bargain buys. Nevertheless, we are also not terribly confident of timing the market, and will remain largely invested unless the market heads into an extremely euphoric state. We do not see this happening yet though.

1 comment:

  1. Alot of people think we are doomed, but there are still great ways to make money. Even while the economy is collapsing around us.

    I subscribe to the guy from australia and his FFT economic newsletter at http://www.forecastfortomorrow.com that guy has called many big events before they have happend, including the stock market crash in 2008 and the current financial collapse of the US. (currently happening) I found him from a friend last year, and he has some important work.

    His oil calls are insane, and I have been making good money with them. He is well worth a look, if you want to keep two steps ahead of the sheeple out there.

    I am worried about my financial future. Is anyone else nervous out there?

    ReplyDelete