Inside My Portfolio: What I Hold And Why

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Includes: AGNC, ANH, BMNM, CMO, DX, EPR, FCX, FSITX, FSIVX, FSRVX, FSTVX, FUSVX, MO, MTGE, NLY, NNN, O, PM, RSO, SCHB, SCHC, SCHD, SCHF, SCHH, SCHZ, STOR, TGT, VNQ, VTI, WMT, XOM, ZFC
by: ColoradoWealthManagementFund

Summary

I’ll take readers through a look at my personal portfolio.

My article for October is late because I was making major changes to the spreadsheets I’m using.

This piece shows my allocations as of the middle of November and the category allocations for both October and the middle of November.

Relative to the end of September, my bond allocations dropped dramatically in October to fund a movement to mREITs and preferred shares.

It is useful for readers to have a solid disclosure about the investing choices of the analysts they follow. Seeing the choices the analyst has personally made and what plans the analyst has for their future investing choices provides other investors the opportunity to better understand the mindset of the analyst and determine how they feel about the quality of the analyst's research.

During October I attempted to rebuild my spreadsheet to make it easier to update. The project backfired. In the middle of November I took another stab at it and created a much better system for tracking the way I change positions.

Holdings

The following list contains my current holdings, recent holdings, and some of the shares that I am currently considering taking a position in. This is a fairly long list because some of the ETFs are interchangeable. Since the funds are so similar, it often makes sense to pick the ETF with favorable commission rates for that account.

Ticker

Name of Fund

VTI

Vanguard Total Stock Market ETF

FSTVX

Fidelity Spartan® Total Market Index Fund Fidelity Advantage Class

FUSVX

Fidelity Spartan® 500 Index Fund Fidelity Advantage Class

SCHB

Schwab U.S. Broad Market ETF

SCHD

Schwab U.S. Dividend Equity ETF

MO

Altria Group

XOM

Exxon Mobil

WMT

Wal-Mart Stores, Inc.

TGT

Target

FCX

Freeport-McMoRan

FSRVX

Fidelity Spartan® Real Estate Index Fund Fidelity Advantage® Class

VNQ

Vanguard REIT Index ETF

SCHH

Schwab U.S. REIT ETF

NNN

National Retail Properties

STOR

STORE Capital

O

Realty Income Corp.

EPR

EPR Properties

SCHF

Schwab International Equity ETF

SCHC

Schwab International Small-Cap Equity ETF

FSIVX

Fidelity Spartan® International Index Fund

PM

Phillip Morris International

FSITX

Fidelity Spartan® U.S. Bond Index Fund

SCHZ

Schwab U.S. Aggregate Bond ETF

AGNC

American Capital Agency Corp

ANH

Anworth Mortgage Asset Corporation

MTGE

American Capital Mortgage Investment

DX

Dynex Capital

ZFC

ZAIS Financial

NLY

Annaly Capital Management

CMO

Capstead Mortgage Corporation

OTCQB:BMNM

Bimini Capital Management

RSO

Resource Capital Corporation

AGNCB

Pref. From AGNC

AGNCP

Pref. From AGNC

NLY-D

Pref. From NLY

NLY-E

Pref. from NLY

DX-A

Pref from DX

CMO-E

Pref from CMO

MTGEP

Pref from MTGE

RSO-B

Pref from RSO

EPR-E

Pref from EPR

Cash

CASH

Click to enlarge

Category

Since readers requested an easier way to track allocations over time, I started putting together my "category" chart to show past months as well as current month.

Click to enlarge

I've rotated some in and out of cash as I captured gains and prepared to reposition the portfolio as necessary. I also dropped my bond allocations materially as I was able to take more accounts under my active management as opposed to leaving them in indexed mutual funds. Those mutual funds were designed well, but I will consistently pick managing the capital myself. I couldn't transfer all of the accounts, but I was able to move one of them and that accounts for the sudden decline in bond allocations and international equity by the end of October.

The decline in international equity during November reflects a rapid price decline on Philip Morris International. I didn't sell any of the investments from that category, but it fell from 9.07% to 8.48% primarily reflecting the decline in PM. The total value also increased some as I earned solid returns on other positions.

My domestic equity allocation declined a bit during November as well. There was a sale on Dynex Capital and I needed more cash for the opportunity. I had to free some up there.

Individual Companies / ETFs / Mutual Funds

The next chart breaks down the allocations by the actual ticker.

Click to enlarge

Domestic Equity: VTI / FSTVX / FUSVX / SCHB / SCHD

These are all great ETFs / mutual funds. However, I've been stuck here a bit. I'd like to have more of this capital free to use in chasing preferred shares.

WMT / TGT / MO

Strong dividend champions with great positions within their sectors. WMT and TGT have been rallying and MO has been on the decline.

PM

I treat Philip Morris as an international allocation. They don't sell products domestically. When 100% of sales are international, why would anyone call it a domestic company? I don't care about the headquarters being in America. Sales are in foreign countries and made for foreign currencies.

PM got smashed lately and nearly wiped out the other gains on my portfolio.

MTGE / ZFC / ARR / ANH / SLD / NLY/ RSO / CMO / DX

I buy mortgage REITs when I think they are cheap and sell when I think they are expensive. This has been incredibly profitable for me this year. I don't get emotionally attached.

Preferred Shares

I cleared out my position in EPR-E but I opened up several new positions in preferred shares. The yields are excellent and prices were great on several of the opportunities. As of 11/15/2016, there was a fairly huge rally across the sector.

Cash

I may add some additional cash to my portfolio and as always I may buy or sell anything as changes occur in both share prices and my outlook on the investment.

Allow me to go a step further in that disclosure this month. I am very actively managing positions. I have been catching falling knives in both common stock and preferred shares. The most recent catches were on RSO and RSO-B. Both catches are already very well into the unrealized gain category. Shares of RSO only cost me $7.88 (weighted average price). It was a bad deal over the summer, but I am very happy to own it at these low prices.

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Disclosure: I am/we are long SEE THE CHART FOR TICKERS.

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: Information in this article represents the opinion of the analyst. All statements are represented as opinions, rather than facts, and should not be construed as advice to buy or sell a security. This article is prepared solely for publication on Seeking Alpha and any reproduction of it on other sites is unauthorized. Ratings of “outperform” and “underperform” reflect the analyst’s estimation of a divergence between the market value for a security and the price that would be appropriate given the potential for risks and returns relative to other securities. The analyst does not know your particular objectives for returns or constraints upon investing. All investors are encouraged to do their own research before making any investment decision. Information is regularly obtained from Yahoo Finance, Google Finance, and SEC Database. If Yahoo, Google, or the SEC database contained faulty or old information it could be incorporated into my analysis. Tipranks: Assign no ratings

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