Real Money Portfolio – Update 5/5

This thread tracks real trades in one of my portfolios. Refer to backgrounder for more info.

The great thing about stocks that usual find their way into my portfolios – is that when the move they move.  Unfortunately it cuts both ways, but this time it’s in the direction we like.  For the week, the Real Money Portfolio was up 3.2% v. 0.9% for the S&P 500.  Also by the end of the week, the portfolio was back to 100% invested.  I think this is the third time this year the portfolio has been fully allocated.  In the previous occasions, the week after moving to 100% were disasters.  Let’s hope this time is different – my famous last words.

Let’s take a look at the moves from last week.

First, let’s look at PCU.  Last week I said the following, “I have a nice profit in PCU and I am going to give in a little more leeway down to the second trendline.  This follows the good old – let your winners run theory.”  This worked perfectly as PCU pulled back on Monday and Tuesday.  Wednesday’s move confirmed Tuesday as a pivot low and additional gains were tacked on Thursday and Friday.  PCU closed the week up 3.5%


RIO followed PCU’s script and powered to a new closing high by Friday.  I added to RIO’s position on Friday.  I would have added on Thursday, but I wanted to wait until their earnings were released which was after the bell on Thursday.  RIO earnings were above consensus and all systems are looking good.


Stocks typically run in packs.  BHP, PCU and RIO are definitely doing that.  I added BHP on Thursday’s close.  This was the day before Merill Lynch suggested that BHP might be a Private Equity target


My final move for the week, which was actually the first move, was adding CRESY.  This stock has been a thorn in my side all year.  The stock is up 32% year to date, but I haven’t been able to get on the right side of this trade.  As usual, it is doing what it does best – suck me in and then sticking it to me.  Fortunately, I only added a 10% position.


It was a busy week.  The portfolio is now fully invested.  A pull back is definitely around the corner.  I am just hoping that we can build a little more cushion beforehand. 

Here are the Year to Date results and transactions: Real Money 5.7% v S&P 500 6.2%


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