- Price performance was flat while NAV increased 0.3%.
- Model changed to include portfolio weightings.
- Four funds in model ex-dividend this week.
Last week, I published my first article on how to build a diversified hedged closed-end fund portfolio. To properly evaluate how the system is working, I am going to track weekly performance and will share any changes to the portfolio on a weekly basis. As a reminder, the model is not static as changes in both price and NAV will change. Also, I have added a position weighting for this week's recommended portfolio.
For the week ended August 8, 2014, the model portfolio had an average price gain of 0.0% and an average NAV gain of 0.3%. For the week, the S&P 500 was up 0.4% and the bond market was up 0.2%. Performance was hurt by a 3.2% fall in NHF, but I argue in another posting that this is an excellent buying opportunity.
|Fund||1-wk Price Change||1-wk NAV Change|
For the coming week, I have added Portfolio Weightings for both CEFs and the Inverse ETF Hedges in order to more accurately assess portfolio performance.
|TYG - Tortoise Energy||10.0%||-7.6%||5.1%||Replaces SMM|
|NHF - NexPoint Credit||10.0%||-12.8%||6.4%|
|DNP - Duff&Phelps Select||7.9%||+4.6%||7.7%|
|JRS - Nuveen Real Estate||10.0%||-5.3%||8.4%|
|INF - Brookfield Global||7.1%||-11.3%||6.0%||ex-div 8.12|
DDF - Delaware Dividend
|CFP - Cornerstone Prog||9.9%||+8.4%||20.1%||ex-div 8.13|
|TTF - Thai Fund||2.4%||-12.6%||7.7%|
|JRI - Nuveen Real Asset||10.0%||-8.5%||8.4%||ex-div 8.13|
|MXE - Mexico Equity||7.5%||-10.7%||0.3%||new addition|
|BME - BlackRock Health||2.9%||-3.1%||4.8%||Replaces HQL|
|SPXU - Inverse 3X S&P||3.5%|
|TZA - Inverse 3X Russ2K||2.1%|
|TBT - Inverse 2X 20YR||8.2%|
Sources: Morningstar.com, Dividend.com
As always, I would appreciate any feedback you have on any of the picks or on your portfolio strategy.
Disclosure: The author is long TYG, NHF, DNP, JRS, INF, DDF, CFP, TTF, JRI, SPXU, TZA, TBT. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.