Long-Term Portfolio
  • My long-term "core" portfolio is the second part of my investment philosophy and it is
    designed to hold a bigger piece of a client's investable assets that the "active"
    portfolio.  While it is a more diversified portfolio when compared to my "active"
    portfolio, it still intends to add excess return on a risk adjusted basis versus the
    market.

  • I have been running a long-term portfolio for some time in various shapes and forms.  
    In order to present a track record, I have cut and pasted results from a portfolio I
    operate on  marketocracy.com.   Since it's inception, (08/04/03), this portfolio is up
    102.15%, which works out to be 19.43% annualized, versus a total return from the
    S&P 500 of 67.75% (13.94% annualized).

  • The portfolio is currently heavily weighted in energy (44%) and materials (35%).  I
    feel that both of these sectors will continue to benefit from strong global demand and
    a continued expansion of money supply and credit growth (see my Market Outlook).

  • Lately I have been accumulating some high dividend paying equities (PWE, PDS,
    PWI) as I feel markets are due for a correction.  I plan on raising cash and buying
    more high dividend payers in the week's ahead in this portfolio.

  • I will update this page on a periodic basis (commenting on portfolio changes and
    performance).  Subscribers to my newsletter will get email's before I enact buy and
    sell decisions in my portfolios ("active" and long-term "core").  The returns below are
    through 7/20/07.  This portfolio has strongly outperformed the market YTD (up
    25.71% versus 9.23% for the S&P 500.