My Q1 Portfolio Review and Update

by: Old Trader

I get a relatively small, but steady stream of emails inquiring about my portfolio holdings, so I've decided to provide quarterly updates in the interest of transparency. Plus, it helps enforce a sort of discipline in one's investing to take a considered look at where one's at vis a vis where one wishes to go.

As of March 31, 2011 holdings with weights were as follows, in descending order of weighting:

GIM: (Templeton Global Income) 20.79%
SVM: (Silver Corp. Metals) 11.35%
TOO: (Teekay Offshore Partners) 8.64%
GG: (Goldcorp) 8.00%
MMP: (Magellan Midstream Partners) 7.33%
STO: (Statoil) 6.36%
MO: (Altria) 6.07%
JNJ: (Johnson & Johnson) 5.91%
KMR: (Kinder Morgan Management) 5.87%
PVX: (Provident Energy Ltd.) 5.74%
TEI: (Templeton Emerging Mkts. Income) 4.17%
FTE: (France Telecom) 2.70%
OTCPK:ESOCF: (Enel Spa) 1.64%
Cash: 1.39%
O: (Realty Income) 1.13%

As I note in my profile, I try to pursue an absolute return strategy, which means forgoing outsized gains as a rule, but also eliminating outsized losses, as well. The portfolio gained 6.09% in Q1, based on strong performance from oil/energy related and PM miner positions.

Approximately 12% of the portfolio is tactically deployed, meaning that's where most of the trading happens. Currently, that's in the area of PM miners, silver specifically.

It's probably apparent that I'm still bullish on energy and energy-related firms. I've upped my exposure to PM miners, but am not entirely comfortable with the volatility it adds to the portfolio, especially in the case of silver-related holdings (SVM, in this case).

Another notable change that I've implemented, since Q4, has been switching the bulk of the holdings from the reinvestment of dividends/distributions to taking them as cash, as I feel that there may not be too much more upside left in many, at least for now. I'll be building up cash reserves in order to take advantage of future buying opportunities. Adding to the O position is something I'm looking at, as well as adding some tech exposure.

Even though the event occurred after the end of Q1, again, in the spirit of full disclosure, and because it's a meaningful change, it should be noted that the position in SVM was exited. The effect of this was to reduce the PM miner weight from 19.35% down to 8.00%, while raising cash to 12.74% from 1.39%. In all likelihood, I'll reestablish a position in SVM, albeit at a smaller weighting. I've been fairly successful in trading in and out of silver-related positions, but my targeted allocation for PM miners is 10-15%.

Disclosure: I am long GIM, SVM, TOO, GG, MMP, STO, MO, JNJ, KMR, PVX, TEI, FTE, O.

About this article:

Author payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500. Become a contributor »
Problem with this article? Please tell us. Disagree with this article? .