CLIMBING OUT
Today, both REAP and the S&P500 climbed out of their fox-holes in counter-attack with guns blazing. There were no trades today, but REAP, despite still having hedges on, kept pace with (and it’s lead over) the S&P500 in today’s big rally. The decline in oil was a contributing factor, as it caught up to the recent pullback in natural gas. Gold also eased, so the commodity shorts covered the flank. Big gains included:
Formfactor (FORM) +5.8%
Genessee & Wyoming (GWR) +12.2%
Crude Oil short ETF (HOD) +6.0%
Harley Davidson (HOG) +7.0%
Sun Hydraulics (SNHY) +5.2%
Trina Solar (TSL) +12.9%,
and the recently loaded-up-on ProShares Ultra Financials ETF (UYG), a whopping +22.4%.
This leaves REAP still ahead of the S&P500 by 8.4% and down only 5.5% in absolute terms in calendar 2008. The portfolio stats after today are as follows:
| PORTFOLIO SUMMARY | 16-Jul-08 | ||||
| (in $C, adjusted for $US exchange rates) | |||||
| PORTFOLIO | S&P500 | S&P500 | SP500 $C | REAP | vs S&P |
| Reference Date | Start | Last | % | % | Var. |
| Inception MAR 07 | 1395.4 | 1245.4 | -27.5% | -27.2% | 0.3% |
| Re-start OCT 07 | 1565.2 | 1245.4 | -19.6% | -15.0% | 4.6% |
| 2008 Year to Date | 1468.4 | 1245.4 | -13.8% | -5.5% | 8.4% |
| Discretionary Trading P&L (included in above results) | -5.6% | ||||
| Dividend Yield (current) | 0.88% | ||||
| Canadian dollar | Last | Inceptn | Var. | Restart | Var. |
| 0.9981 | 0.8547 | -16.8% | 1.0069 | 0.9% | |
| Currency Mix | |||||
| Canadian Investments/Cash | 31.5% | ||||
| US Investments | 62.8% | ||||
| Other (country ETFs) | 5.6% | ||||
| Market Bias | Long | 48.8% | |||
| Cash | 0.8% | ||||
| Net Short | 25.2% | ||||
| Net Long | 74.0% | ||||
| Theme Mix | |||||
| Energy / Commodity | 10.9% | ||||
| Short Commodities | 16.6% | ||||
| Environment / Infrastructure | 10.6% | ||||
| Financial | 11.3% | ||||
| Health Care | 10.2% | ||||
| Technology | 14.1% | ||||
| Short Equities | 8.6% | ||||
| Transportation | 8.3% | ||||
| Hospitality | 3.0% | ||||
| Asia | 5.6% | ||||
| Cash | 0.8% | ||||
| Portfolio Notes | |||||
| Inception date is when I started tracking portfolio performance in | |||||
| this blog. I track it to reflect total performance after initial mistakes | |||||
| and discretionary trading losses. A more accurate representation | |||||
| of REAP’s “pure” performance is as of 10 Oct 07, when I | |||||
| re-established it after selling out the portfolio twice due to | |||||
| sub-prime systemic concerns. | |||||
| CANADIAN MARKET HOLDINGS | |||||
| Stock | Sym | Cost | Last | Gain % | Weight |
| Husky Energy | HSE | $42.33 | $42.15 | -0.43% | 1.9% |
| HBP NGas Sht ETF | HND | $10.77 | $8.91 | -17.24% | 4.0% |
| HBP Gold Sht ETF | HGD | $9.98 | $8.28 | -17.01% | 3.4% |
| ING Canada | IIC | $41.12 | $36.82 | -10.46% | 3.4% |
| HBP Ag Bull+ ETF | HAU | $16.53 | $18.25 | 10.44% | 1.2% |
| HBP Oil Sht ETF | HOD | $11.13 | $7.48 | -32.82% | 5.4% |
| IGM Financ’l | IGM | $42.08 | $38.86 | -7.65% | 2.5% |
| HBP Ag Bear+ ETF | HAD | $22.35 | $20.23 | -9.47% | 3.9% |
| Precsn Drilling | PD.UN | $17.65 | $23.74 | 34.50% | 4.0% |
| HBP NGas ETF | HNU | $23.56 | $33.76 | 43.28% | 1.2% |
| US MARKET HOLDINGS | $C Adj | ||||
| Stock | Sym | Cost | Last | Gain % | Weight |
| Broadcom | BRCM | $26.12 | $29.74 | 14.08% | 1.9% |
| Gen & Wyom | GWR | $25.56 | $38.70 | 51.72% | 4.3% |
| PrSh S&P Sh ETF | SDS | $63.30 | $70.67 | 11.86% | 2.1% |
| PrSh Ultra Financ’l | UYG | $25.16 | $18.06 | -28.07% | 5.4% |
| ISh Australia ETF | EWA | $26.59 | $25.62 | -3.48% | 2.7% |
| Formfactor | FORM | $26.57 | $19.99 | -24.62% | 3.1% |
| Harley Davidson | HOG | $49.90 | $36.18 | -27.36% | 3.9% |
| Roch. Medical | ROCM | $12.37 | $10.39 | -15.85% | 2.5% |
| Forest Labs | FRX | $35.70 | $35.69 | 0.15% | 4.6% |
| Nvidia | NVDA | $23.05 | $11.32 | -50.80% | 3.4% |
| PrSh Rus2000 Sh ETF | SKK | $81.18 | $73.84 | -8.86% | 2.6% |
| Buff Wld Wings | BWLD | $29.29 | $26.41 | -9.66% | 3.0% |
| Cree Inc | CREE | $26.96 | $19.50 | -27.54% | 2.4% |
| PrSh Dow Sh ETF | DXD | $54.46 | $65.83 | 21.10% | 1.1% |
| iSh Asia ex-Japn | EPP | $135.60 | $132.15 | -2.36% | 3.0% |
| Credo Petrlm | CRED | $11.43 | $12.18 | 6.75% | 2.6% |
| Q-Logic | QLGC | $15.95 | $16.34 | 2.63% | 5.7% |
| PrSh NASD Sht ETF | QID | $45.37 | $44.56 | -1.59% | 2.7% |
| PrSh Ultra Health ETF | RXL | $56.38 | $56.39 | 0.20% | 3.1% |
| Sun Hydr’lics | SNHY | $24.85 | $34.29 | 38.27% | 2.5% |
| Trina Solar | TSL | $35.67 | $33.44 | -6.07% | 5.7% |
REAP GROUPS
I haven’t updated the 6 REAP groupings in a while, so here they are again. They haven’t really changed in the last few months except for the small short equity ETF re-adjustment (SDS and SKK) made to Groups 1 and 6 on July 7.
| REAP Holding | Symbol | Industry | Yield |
| Group 1 | |||
| Husky Energy | HSE | Integrated oil | 3.78% |
| HBP NGas Sht ETF | HND | 2x short natural gas ETF | 0.00% |
| Broadcom | BRCM | Telecom & cable equipment | 0.00% |
| Gen & Wyom | GWR | Short-haul railroads | 0.00% |
| PrSh Ultra Financ’l | UYG | 2x long financials ETF | 2.58% |
| PrSh S&P Sh ETF | SDS | 2x S&P500 short ETF | 1.50% |
| Group 2 | |||
| HBP Gold Sht ETF | HGD | 2x short gold shared ETF | 0.00% |
| ISh Australia ETF | EWA | Australia country ETF | 4.81% |
| Formfactor | FORM | Integrated circuit test equipmt | 0.00% |
| Harley Davidson | HOG | Motorcycles | 2.64% |
| Roch. Medical | ROCM | Telecom & cable equipment | 0.00% |
| Group 3 | |||
| HBP Oil Sht ETF | HOD | 2x short crude oil ETF | 0.00% |
| Buff Wld Wings | BWLD | Roadhouse restaurants | 0.00% |
| Cree Inc | CREE | LED & IC low-power electrncs | 0.00% |
| PrSh Dow Sh ETF | DXD | 2x Dow Jones short ETF | 1.63% |
| iSh Asia ex-Japn | EPP | Asia-Pacific ex-Japan ETF | 5.24% |
| Group 4 | |||
| IGM Financ’l | IGM | Asset Management | 4.37% |
| HBP Ag Bear+ ETF | HAD | 2x short grains ETF | 0.00% |
| Credo Petrlm | CRED | Oil and gas | 0.00% |
| Q-Logic | QLGC | Pharmaceuticals | 0.00% |
| PrSh NASD Sht ETF | QID | 2x NASDAQ short ETF | 2.40% |
| Group 5 | |||
| Precsn Drilling | PD.UN | Drilling & oilfield services | 8.84% |
| HBP NGas ETF | HNU | 2x long natural gas ETF | 0.00% |
| PrSh Ultra Health ETF | RXL | 2x healthcare ETF | 1.05% |
| Sun Hydr’lics | SNHY | Fluid powr systms compnents | 1.45% |
| Trina Solar | TSL | Solar technology | 0.00% |
| Group 6 | |||
| ING Canada | IIC | Online banking and insurance | 2.63% |
| HBP Ag Bull+ ETF | HAU | 2x long grains ETF | 0.00% |
| Forest Labs | FRX | Branded & generic drugs | 0.00% |
| Nvidia | NVDA | Video graphics technology | 0.00% |
| PrSh Rus2000 Sh ETF | SKK | 2x Russell 2000 short ETF | 1.17% |
| Portfolio Yield | 0.88% | ||
So, let’s see if we can hold this ground, and capture more.
I’m still vacationing with my family by the ocean in the North Carolina Outer Banks. Last night we went to see a baseball game (college-level summer league) where the Peninsula Pilots defeated the local Outer Banks Daredevils (who for some reason I kept on wanting to call Dirt-Devils) 6-4. It wasn’t a terribly exciting game, underscored by the fact that the Daredevils scored 2 runs on no hits in the 5th inning. (One guy actually struck out pathetically, but forced in a run none-the-less when the ball went into the dirt three feet ahead of him – he actually swung at that – and got by the catcher.) The gang want to go see another game today or tomorrow. I dunno. 
Cheers,
Allocator
a.k.a George Parkanyi
gparkanyi@hotmail.com
Copyright 2008 – all rights reserved
