Monday, November 10, 2008

September Update

For the Fiscal Year ending September 30th, 2008 the Model Portfolio’s return was -11.0% vs. S&P 500’s total return of -20.6%. Since inception, the Model Portfolio's 3-year return through September 30th, 2008 is 21.2% vs. S&P 500's total return of 4.2%.

It was a tough year. Many of our holdings are deep in negative territory especially those with exposure to the housing market. For now we are happy to hold on to these holdings and in some cases will increase our positions. Many should emerge stronger from the current downturn. Coutrywide Financial which we bought aggressively throughout the year is now Bank of America (NYSE: BAC). We also added new positions such as Ebay (Nasdaq: EBAY) and General Electric (NYSE: GE). Finally, Cadbury (NYSE: CBY) completed the spin-off of Dr. Pepper (NYSE: DPS).

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