Protected Principal Retirement Strategy: Quarter 1 Portfolio Performance

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 |  Includes: ALDW, BBEP, CCLP, CHKR, CLMT, CMLP, EGRGF, ENLK, EPD, FRHLF, GLP, MCC, MEMP, NATDF, PER, PSEC, SDRL, SFL, TLP, VNR
by: Akaralph

I have finally had the opportunity to review the Protected Principal Retirement Strategy portfolio's performance for the first quarter of 2013. For the quarter our portfolio consisted of master limited partnerships (MLPs), royalty trusts (RTs), business development corporations (BDCs), and a few energy stocks.

The Table below presents a summary of the overall quarterly performance for the first quarter of 2013. As you are aware, each of these stocks have been thoroughly covered in prior SA articles in the Protected Principal Retirement Strategy series.

STOCK JANUARY 2 PRICE MARCH 28 PRICE DIVIDENDS PAID TOTAL RETURN
MLPs
ALDW $21.17* $26.62 $.57 28.4%
BBEP $18.90 $20.04 $.47 8.5%
CLMT $32.07 $37.25 $.65 18.2%
CMLP $22.20 $23.85 $.51 9.7%
EPD $51.05 $60.29 $.66 19.4%
GLP $26.26 $35.85 $.57 38.7%
GSJK $17.05 $19.90 $.42 19.2%
MEMP $17.97 $19.81 $.507 13.1%
TLP $38.65 $50.74 $.64 32.9%
VNR $26.95 $28.43 $.609 7.8%
XTEX $15.25 $18.40 $.33 22.8%
RTs
CHKR $16.80 $13.98 $.67 -12.8%
ENYTF $7.70 $6.45 $.2625 -12.8%
FRHLF $22.77 $23.07 $.42 3.2%
PER $17.45 $14.66 $.603

-12.5%

BDCs
MCC $15.01 $15.85 $.36 8.0%
PSEC $10.89* $10.91 $.33 3.2%
OTHER
NATDF $10.77 $9.26 $.22 -12.0%
SDRL $37.66 $37.21 NOT PAID Q1 -1.2%
SFL $16.90 $17.64 NOT PAID Q1 4.4%
Click to enlarge

* Both ALDW and PSEC were purchased around mid-January.

Both SDRL and SFL paid a double dividend in December to offset the potential additional tax burden to shareholders that might occur in January based upon the action of the U.S. Congress.

The portfolio's total return for quarter 1 of 2013 was 12.5 percent. Considering the performance of the royalty trusts, I have to be quite pleased.

Summary

Clearly, our best performers were the MLPs (our lowest return in this asset class was VNR at 7.8 percent, and the highest was GLP at 38.7 percent.

The RTs continued to be a drag on the portfolio (except for OTCPK:FRHLF) with only one of our four positions providing a positive result for the quarter. The BDCs have underperformed the market since the beginning of 2013, however, the total return of the two that we hold was positive. In the "Other" category, our miscellaneous energy and shipping holdings performed only "so-so". I believe that both SDRL and SFL would have performed better had each declared some type of dividend during the quarter.

We have made no changes to the portfolio since March 28, and even though there are a few "soft" spots it is our intention to hold fast until the markets show signs of a significant correction (or collapse).

Disclosure: I am long ALDW, BBEP, CHKR, CLMT, CMLP, ENYTF.PK, EPD, OTCPK:FRHLF, GLP, GSJK, MCC, MEMP, OTCPK:NATDF, PER, PSEC, SDRL, SFL, TLP, VNR, XTEX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article does not constitute either a buy or sell recommendation for any of the stocks mentioned.