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Dynamic Allocation Portfolio Update – April 2015

The dynamic allocation portfolio had a nice 6.3% gain in April. During the month, S&P500 index returned 1.1%. This certainly helped performance of the SPXL component as it is 3X leveraged. The main source of outperformance came from the XIV component, which returned 15.4% during the month. The contango between front and second month VIX future was about 10%, which provided a nice and strong tailwind to the return of XIV.

As discussed last month, I reduced weight of XIV to about 30% this month to keep portfolio leverage level in line with initially planned after I replaced SSO with SPXL. The transaction fees decreased performance of the portfolio by 2% for the month.

 

Holding 1

Holding 2

     

Date

ETP1

Share1

Buy price1

Current price1

ETP2

Share2

Buy price2

Current price2

Cash

Account value

Return since inception

3/31/2015

SPXL

5

86.79

88.44

XIV

12

28.57

34.64

0

936.05

-6.4%

4/30/2015

SPXL

7

89.23

90.76

XIV

8

28.57

39.92

40.73

995.41

-0.5%

Disclosure: The author is long XIV, SPXL.