This is the second performance update on my 10 Clean Energy Stocks for 2009. In the first quarter, the model portfolio was up a tiny 1.6%, but still managed to beat the benchmarks handily (by 8% and 9%), since they were both down significantly.
In the last three months, the market has turned around, logging significant gains, but my ten picks have continued to outperform.
Change 12/27/08 to 7/2/09
Dividend & Interest
|The Algonquin Power Income Trust||AGQNF.PK||+64.97%||8.17%|
|First Trust Global Wind Energy ETF||FAN||21.88%||0.46%|
|New Flyer Industries||NFYIF.PK||+26.23%||5.98%|
|Warterfurnace Renewable Energy||WFIFF.PK||+17.77%||2.16%|
|-2x S&P Depository Receipts + 3x Cash (was SDS until Feb 13)||3x $ - 2x SPY||-14.45%||-0.16%|
|iShares S&P Global Clean Energy Index (NASDAQ:ICLN)||13.95%|
In the second quarter, the portfolio has added 16.5% relative to the broad market index, and 4.1% relative to the clean energy ETF, for a total of 24.5% and 13.1% outperformance for the first half.
I continue to attribute my outperformance to the Obama Effect, and the fact that clean energy has been outperforming the market as a whole supports this hypothesis. If it's not just luck, the reason I've been beating the clean energy ETF is also probably due to the Obama effect: my picks are concentrated on sectors which are not only green, but likely to deliver the biggest boost to jobs.
As readers are well aware, I don't expect market gains to continue, and have been moving into cash. I got called out of most of my Cree position (NASDAQ:CREE), as well as a little of my FAN, shed much of my Ormat position as well (NYSE:ORA), and managed to lighten up on GE when it hit $14.50, but I still like all four companies, and will buy again when I feel the price is right. The others I've been holding, although I sold some calls on Johnson Controls (NYSE:JCI).
If I had to buy any of these stocks today, it would be Trinity (NYSE:TRN).
Despite all this trading, I'm keeping this model portfolio as it is. I expect these 10 to continue to outperform, even if (as I expect) both the market and this model portfolio head down in the third quarter.
Stay tuned for updates on my Ten Clean Energy Gambles for 2009 (now slightly outperforming the benchmarks - Q1 update here) and my Quick Clean Energy Mutual Fund Tracking Portfolio (building on previous gigantic gains - Q1 update here) as these come up on 6 months after the articles were published.
DISCLOSURE: The author and/or his clients own AGQNF, CREE, FAN, GE, JCI, NFYIF, ORA, TRN, WFIFF.