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Investment Tracking: July 2014

Taxable Investment Account

We had a challenging end to the month of July with economic indicators showing a whiff of inflation and the Fed saying that inflation was close to their target rate. Combined with ongoing geopolitical concerns and Argentina moving into default, the markets began a strong but orderly selloff. The DOW is now in negative territory for 2014. While the DOW is mostly irrelevant these days, it does provide still generate a fair amount of headline risk. My primary portfolio tracked the S&P with a 1.6% loss for July. For the year this account is up 12.7% on a time weighted basis.

Aside from option activity, there was minimal change in the portfolio this month:

  • FB covered call was assigned. Will look to re-enter either through outright purchase or selling put.
  • CBMX sold for nice profit. Replaced with BIIB in portfolio. Will look to re-enter CBMX soon.
  • TWTR is still owned but the covered call is well in the money so will likely get assigned in two weeks. Will look to re-enter as quarterly results were very impressive. Once the market regains it's footing this stock should be an early rally candidate.

There were a lot of stocks down over 5% this month. Far more than normal: ABBV, ARCC, BA, CLDX, CLVX, CTRL, EVEP, INSY, KKR, LAD, LINE, NPSP, SGEN, TSYS, WYY. Stocks up over 5% were ARLP, CLF, DLR, LGF and TWTR.

Option positions at month end

  • Cash covered puts: DAL, M
  • Covered calls: DLR, LGF, TWTR
Primary Portfolio
Month Dividends Options Equity Total S&P Nasdaq
January 0.17 % 0.22 % (1.27)% (0.9)% (3.6) % (1.7)%
February 0.25 % 0.27 % 3.03 % 3.5 % 4.3 % 5.0 %
March 0.36 % 0.31 % (0.95)% (0.3)% 0.7 % (2.5)%
April 0.10 % 0.46 % 0.77 % 1.3 % 0.6 % (2.0)%
May 0.31 % 0.30 % 2.92 % 3.5 % 2.1 % 3.1 %
June 0.25 % 0.33 % 6.02 % 6.6 % 1.9 % 3.9 %
July 0.11 % 0.22 % (1.89)% (1.6) % (1.5)% (0.9)%
             
YTD 1.6 % 2.1 % 8.7 % 12.7 % 4.4 % 4.6 %
Click to enlarge

Tax Deferred Account

This portfolio is primarily yield based with a more modest risk profile. With the market rotating away from risk this month this portfolio had a relatively better performance, remaining flat for the month. For the year, account remained up 8.3% on time weighted basis. The only activity for month was a position initiated in SO.

Disclosure: The author is long ABBV, AHT, AMGN, APU, ARCC, ARLP, BA, BAX, BAC, BGS, BIIB, BMY, BX, C, CLDX, CLF, CLVS, CODI, CTRL, DAL, DLR, DOW, EVEP, FCX, GE, HCP, HPQ, HTZ, INSY, JNJ, JPM, KKR, KMR, LAD, LGF, LINE, MMM, MO, MS, MSFT, NPSP, PFE, PRU, QRE, SGEN, SO, SQNM, TSYS, TWTR, VZ, WYY.