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Our portfolio did not perform nearly as well as it did in Quarter 1 of 2013. I believe that this was primarily due to the fact that typically MLPs underperform during Quarter 2 before picking up in the third quarter of the year. We shall see how that opinion holds during the coming three months.

During the second quarter, we made a few minor changes to the Protected Principal Retirement Strategy portfolio.

1. We sold our position in Medley Capital (NYSE:MCC) for a profit.

2. We initiated a position in TCP Capital (NASDAQ:TCPC).

3. We initiated a position in New Source Energy Partners (NYSE:NSLP).

4. We initiated a position in Nuveen Real Estate Income Fund (NYSEMKT:JRS).

For the second quarter the portfolio continued to be weighted towards MLPs, Royalty Trusts and energy.

The Table below presents a summary of the portfolio's performance for the second quarter of 2013. Each of the stocks in our portfolio have been covered in one, or more of prior Protected Principal Retirement Strategy articles on SA.

STOCK3/28/13 PRICE6/28/13 PRICEDIVIDENDS PAIDTOTAL RETURN
MLPs
ALDW$26.62$23.80$1.48-5.1%
BBEP$20.04$18.25$.475-6.5%
CLMT$37.25$36.38$.680.0%
CMLP$23.85$24.95$.516.8%
EPD$60.29$62.15$.674.2%
GLP$35.85$39.90$.58312.9%
GSJK$19.90$19.04$.425-2.2%
MEMP$19.81$19.60$.5121.5%
TLP$50.74$41.91$.64-16.1%
VNR$28.43$27.90$.6150.1%
XTEX$18.40$20.62$.3313.9%
RTs
CHKR$13.98$15.41$.6915.2%
ENYTF$6.45$7.20$.262515.7%
FRHLF$23.07$22.60$.420.0%
PER$14.66$14.83$.5124.7%
BDCs
PSEC$10.91$10.80$.332.0%
JRS$11.25$11.90$.247.9%
TCPC$15.63$16.77$.369.6%
STOCK3/28/13 PRICE6/28/13 PRICEDIVIDENDS PAIDTOTAL RETURN
OTHER
NATDF$9.26$8.56$.22-5.2%
SDRL$37.21$40.74$.8811.9%
SFL$17.64$14.84$.39-13.7%

I purposely omitted NSLP from this tabulation since it was purchased very close to the end of the quarter.

Summary

The portfolio's total return for the second quarter was 2.0 percent. Needless to say I am not happy about that, but it is better than a loss. On the bright side, ten of our positions increased distributions during this period.

Where the MLPs were the best overall performers during quarter one, surprisingly, the royalty trusts outperformed during the second quarter.

Our best performer for quarter two was Eagle Energy Trust (OTC:ENYTF), with a total return of 15.7 percent. The worst performer was Transmontaigne Partners (NYSE:TLP) with a total return of -16.1 percent. Apparently, TLP's performance was impacted by profit taking (maybe some shorting), since the quarterly report did not contain any disconcerting news.

Source: Protected Principal Retirement Strategy: Quarter 2 Portfolio Performance

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