Saturday, October 1, 2011

Third Quarter Performance

No point in sugar-coating it, my performance in the third quarter was absolutely abysmal.

In retrospect, it's abjectly obvious that I hung on too long to names like Sauer-Danfoss (NYSE: SHS), Portfolio Recovery (Nasdaq: PRAA), and ISTA (Nasdaq: ISTA), and probably should have cut bait on names like Commercial Vehicle Group (Nasdaq: CVGI) a long, long time ago.

On the other hand, I believe in buying good companies and holding them for as long as the businesses are good ... so I'm not going to beat myself up just because it crushed my performance (and wrecked my YTD performance as well).

Going forward, I have money to invest and I'm getting a little twitchy about the energy and resource names, as well as some tech names. Yeah, if we tip over into recession those names will get smacked, but then so will most of what I own anyway. It's not often that names like Freeport McMoRan (NYSE: FCX) or F5 (Nasdaq: FFIV) get close to cheap, so maybe now's the time.

Q3'11 Performance
Portfolio A - (19.0%)
Portfolio B - (11.5%)
Combined Portfolios - (16.5%)

S&P 500 - (14.3%)
Nasdaq - (12.9%)
Russell 3000 - (15.7%)

YTD Performance
Portfolio A - (11.2%)
Portfolio B - (4.1%)
Combined Portfolios - (8.8%)

S&P 500 - (10.0%)
Nasdaq - (9.0%)
Russell 3000 - (11.1%)

Disclosure: I own shares of Sauer-Danfoss, Portfolio Recovery, ISTA, and CVGI

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