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John Cofran
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John Cofran is a professional investor and money manager with 20+ years experience, and over $10,000,000 in assets under management. He is a former CPA applicant with degrees in Finance, Accounting and Economics from Boston College. In addition to building several highly successful private... More
  • August Portfolio Recap 2 comments
    Sep 7, 2010 8:08 AM | about stocks: PBI, PFF, JNK, JNJ
    August (August 2 - September 3) produced seesaw action, with a late month rally closing the S&P essentially flat at 1,104. During the month the S&P tested, and held, the 1,040 level we have been discussing as key support.

    Here at Cofran Capital, we had a solid month, producing gains of 2.8%. Our defensive portfolio stance, coupled with significant dividend income, allowed us to book consistent profits with limited volatility. As we enter the de facto first trading day of September, our 21% cash pile will provide opportunities to make quick gains during a traditionally volatile September month. We will use new capital and dividend income to move closer to a fully invested position on any weakness in late September and mid October.

    Overall Sentiment:  Cautious to Neutral
    Portfolio Yield: 7.62%
    Projection: Range-bound. Support near 1,060; Resistance near 1,130. Break-out to 1,280 this winter.

    Top 5 Positions:
    1. Cash - 21%
    2. Pitney Bowes (PBI)- 6%
    3. iShares S&P U.S. Preferred Stock Index (PFF)- 4%
    4. SPDR Barclays Capital High Yield Bond (JNK)- 4%
    5. Johnson & Johnson (JNJ)- 4%


    Disclosure: Long: PBI, PFF, JNK & JNJ
    Themes: market current, predictions, sentiment Stocks: PBI, PFF, JNK, JNJ
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  •  
    How are you playing the JNK?

    I find it productive to buy the JNK and sell a DTM Call and just retreive the .833% yield per month. I sell the call to protect me in case this low-beta ETF actually declines 20-30%
    20 Sep 2010, 11:36 AM Reply Like
  •  
    Giorgio,

    I maintain a long position in JNK both for yield and as a hedging strategy for the portfolio. I like the strategy you have outlined, however it would negate the hedging properties of JNK within my portfolio. I do not foresee a likely scenario that would jeopardize JNK to the tune of 20 - 30%.

    I hope that helps. Thank you for reading and for your inquiry.
    20 Sep 2010, 12:33 PM Reply Like
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