My Portfolio Is Beating The Market Despite Allergan Getting Crushed

| About: Allergan plc (AGN)

Summary

My portfolio is beating the market 6.34% to a drop of 1.64%.

I added additional shares of Allergan to the portfolio today.

Eaton Vance, Priceline, and McGraw-Hill are buoying the losses Allergan has contributed to the portfolio.

During 2015 I decided that I wanted a portfolio which mimicked the S&P 500 without owning an index fund to do it. From the inception of the portfolio I have always at most maintained twelve stocks. This portfolio is up 6.34% so far compared to the 1.64% drop in the S&P 500. The portfolio is up right now because of the significant outperformance of Eaton Vance (NYSE:EV), Priceline Group (NASDAQ:PCLN), and McGraw-Hill (NYSE:MHFI). The intention of this portfolio is for long-term investments (minimum of three months), not trades.

I evaluate the portfolio quarterly after earnings season and I only make changeouts if the fundamentals have changed in a company. I try to hold two stocks in each of the following categories: value, dividend growth, growth, and growth & income; and four speculative names. I also try to have at least one stock in each sector. The portfolio is currently yielding 0.84% but I'm not worried about yield for this portfolio.

Just the other day I decided to add to my position in Allergan (NYSE:AGN). I'd like to give a quick synopsis of the stock right now and provide an update for the entire portfolio. Please keep in mind that I do individual homework on these stocks through articles here on SA and you can look up the tickers with their corresponding articles, but you should always do your own homework too.

Allergan

Allergan is a specialty pharmaceutical company. The Company is engaged in developing, manufacturing and distributing generic, brand and biosimilar products. The stock appears to be inexpensively valued on next year's earnings estimates while having great earnings growth expectations for the near-term. The company pays no dividend but has decent financial efficiency ratios. I believe the stock offers great value as long as it remains below the $282 level.

Now it's time for an update on the entire portfolio from inception.

Company

Ticker

incl. DIV

Portfolio

Eaton Vance Corp

 

12.97%

8.88%

The Priceline Group Inc.

 

10.67%

7.55%

McGraw-Hill Companies Inc.

 

10.24%

5.09%

Skyworks Solutions Inc.

(NASDAQ:SWKS)

5.25%

12.26%

O'Reilly Automotive, Inc.

(NASDAQ:ORLY)

3.63%

3.07%

Gilead Sciences Inc.

(NASDAQ:GILD)

1.91%

9.75%

Alphabet Inc.

(NASDAQ:GOOG)

-0.75%

2.17%

Biogen Inc.

(NASDAQ:BIIB)

-4.31%

10.83%

Allergan plc

 

-12.23%

15.53%

RHI PUT

(NYSE:RHI)

-20.82%

1.66%

GILD PUT

 

-17.53%

1.64%

Cash

$

 

21.56%

Click to enlarge

This is definitely an aggressive portfolio and tends to move with quite a bit of volatility but has the potential for producing great long-term gains. So far this portfolio is beating the overall market this year but the key is to keep tabs on all your stocks regularly as well. Roughly 79% of my holdings are centered in North America because I feel the rest of the world is struggling right now.

I have a heavy focus in the healthcare sector with zero exposure to the consumer defensive sector. This is definitely a portfolio filled with large cap names geared towards growth. The majority of the growth is geared towards aggressive growth as well. The P/E for the portfolio previously rested at 15.65 but is now 15.3 with the additional shares added this week. I anticipate this portfolio to produce high long-term returns but with quite a bit of volatility along the way.

Disclaimer: This article is in no way a recommendation to buy or sell any stock mentioned. This article is meant to serve as a journal for myself as to the rationale of why I bought/sold this stock when I look back on it in the future. These are only my personal opinions and you should do your own homework. Only you are responsible for what you trade and happy investing!

Disclosure: I am/we are long AGN, BIIB, EV, GILD, GOOG, MHFI, ORLY, PCLN, SWKS.

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.