Monthly Portfolio Review: Looking for Big Caps

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 |  Includes: AAPL, ADP, BIDU, CMG, CSE, CTRP, DRE, DUK, DWSN, FTR, GWR, JLL, LXP, MBIS, MDY, MIDD, MKL, OTTR, RGA, SPRO, SPY, UA
by: Investorpoet

When the Against the Sky Portfolio was initially launched, I stated the principles of the portfolio and how investments would be allocated. Now is a good time to look at the current allocations of the portfolio and re-visit the principles as initially conceived.

Below is a table of the portfolios holdings as of 3/31/09:


Company % Portfolio Target Allocation
Foreign Bond
MGGBX 11.65%
Total: 11.65% 10%
Foreign Stock
HIINX 8.16%
Total 8.16% 10%
Large/Mid Cap
SPY 10.30%
MDY 7.10%
ADP 5.42%
CMG 3.68%
MKL 3.50%
RGA 3.00%
FTR 2.88%
DUK 2.65%
AAPL 2.59%
BIDU 2.18%
Total 43.30% 60%
Small Cap
LXP 4.40%
MIDD 4.00%
OTTR 2.86%
GWR 2.62%
UA 1.82%
SPRO 1.71%
CTRP 1.69%
JLL 1.58%
DWSN 1.50%
WEBM 0.86%
DRE 0.71%
CSE 0.56%
Total 24.31% 20%
Cash 12.58%
Click to enlarge

Market turmoil has turned some of my mid-cap companies into small caps, causing my allocation in small-cap companies to rise to 24%. There will not be any sales to decrease this percentage, though I am looking to increase the quality of some of these holdings. With almost 13% of the portfolio in cash, I will be looking to invest in high quality large-caps on market dips.

Initially, I had hoped to invest in companies that I would be comfortable owning for 10 years. Certainly not all of the current holdings meet that criteria. Again, I need to re-focus this portfolio on quality. However, the current market is providing opportunities to buy companies at well-below their liquidation value. These may not be high quality companies, but they do provide significant upside potential. Money will be concentrated in my best ideas over the coming months.