We are very pleased to announce our client portfolio performance returns as of July 31, 2013.
We classify client accounts into two categories: Under 20 Holding and Above 20 Holdings. Above 20 Holdings is our default portfolio system new accounts. “Above 20” implies that there is a minimum of 20 stocks in the portfolio but many portfolios in this category have 30, 40 or more.
RMHI Under 20 Holdings: 27.42%
RMHI Above 20 Holdings: 30.9%
S&P 500: 18.2%
RMHI returns include all fees and expenses.
RMHI is not a mutual fund. We manage private portfolios held at Charles Schwab and Co. on behalf of our clients. Our specialty is managing quantitatively driven portfolios with a socially responsible investing screening process.
We believe the combination of scientifically based, back-tested quantitative style provides a superior alternative to socially responsible mutual funds. You can see for yourself at SocialFunds.com
CNN Money has a Fear and Greed Index which now reads 18%, this is a positive development. I imagine this is due to impending action in Syria. But this is just part of the investing process and to understand how to make the Fear and Greed Index work for you understand that you should be alert and looking for buying opportunities when Fear is prevalent and be cautious when Greed is commonplace.
Our intermediate time frame (under six months) and longer term time frames remain positive.
Background music: Ennophonic by Redlounge Orchestra
The most popular question I frequently hear is: “Your back test results look great, almost too good to be true but do your portfolio designs really working going forward?” Very fair question and if you don’t mind this is a great time to add some legalese “Past results don’t guarantee future results or even that a model devised by man and laptops will actually turn a profit in the future”. You know the drill, a back test can look great but will it work in the future or will it be a flop?
Late last year we took (what we thought) was a brave and potentially embarrassing step by placing three distinct trading models on the quantitative trading platform Collective2.com By doing this we could demonstrate the effectiveness of our systems in real time going forward, rather than relying on hypothetical back-testing. While there is no actual cash behind these C2 portfolios we trade them on the C2 platform as if there were like any other client portfolio.
In addition, if you’re intrigued and curious about our holdings, volatility or turnover C2 is a great place to check us out. You’ll see our winners and alas, our losers. In addition to our holdings, Cs provides a month by month return graph. You’ll also notice in the link below that C2 has given our portfolios a rank which is based on their proprietary ranking system and our rank as of August 24 is 9.95 and the highest possible rank is 10. According to C2 “In general a ranking above 5.0 is good. A rating above 7.0 is excellent.”
(Click on this image to be directed to our C2 accounts)
RMHI/OP III has approximately 30 holdings when fully invested and is designed for investors with over $100,000. It is by default the portfolio management system we employ for new accounts. Its also very scalable where at present we have accounts approaching $2 million in size using RMHI/OP III.
In terms of socially responsible investing, it would be very easy to alter one or two holdings so that the portfolio would meet a Vegan investing criteria.
Year to date 8/23 our C2 account III has returned 34% versus 18% for the S&P 500. Returns include commissions and accounting for slippage. Returns do no include management expenses.
You’ll also see that its possible to subscribe to our models on C2. We don’t encourage C2 subscription hence we keep the monthly cost prohibitive.
If you have any questions you can always call us. Meanwhile Dodgers / Red Sox are starting and it is a Sunday night after all.
Brad
Background music: Just chillin by Polished Chrome
Earlier this week we went on a road trip to check off a Bucket List item that after living in Colorado for 20 years and a deep interest in 19th century western history: The Little Bighorn. While Custer’s defeat in Southern Montana is not the black hole conspiracy mystery such as the JFK assassination, it remains so full of unanswered questions. One of the many things remarkable about the Little Bighorn is the placement of markers on the spots where U.S. cavalrymen fell. The various Indian nations are still in the process of placing their own markers where their warriors fell as well. These markers give you a really good idea of happenings of those fateful hours.
![IMG_0670[1]](http://dev.www.greeninvestment.com/wp-content/uploads/2013/08/IMG_06701.jpg)
Happenings from last week and looking to the week ahead:
Our client portfolios exceeded the return of the S&P 500 by a hefty 2.7% last week due largely to the sale of National Technical Systems which surged 38% on the news of its sale for $23 a share.
While its possible we may currently be in for a mild market pullback the underlying economic fundamentals still support our full equity exposure.
Bob Diehl of nospinforecast.com who developed the Aggregate Spread is giving us an all-clear signal in the search for an impending recession. His method looks 9 months into the future and is giving a green light up to at least April 2014.
In other macro economic news recessionalert.com is giving an all-clear signal as well. Dwaine Van Vuuren of recessionalert (RA) has developed a very intriguing stock market health model that incorporates economic data and stock market technical statistics. I expect I’ll be tinkering with his models shortly and investigating how well the synergy exists between his work and our own.
Green Investing Alert: Our proprietary quantitative ranking systems have identified a stock long enamored by the socially responsible / green investing community: Gaiam
Gaiam is a retailer that caters to the yoga/wellness market. What may be the catalyst going forward is the sale of their stake in Real Goods Solar which is allowing Gaiam to add a significant amount of cash to their balance sheet.
We have no positions in Gaiam at the time of this post.
Brad Pappas
We are pleased to announce our portfolio performance numbers which include all fees including management expenses and all trading costs.
We have decided that due to the diverse number of holdings per account that the fairest and most accurate way to distinguish performance is to group accounts into two classes: More than 20 holding and under 20 holdings. Most new accounts will be over 20 holdings by default.
RMHI over 20 holdings year to date as of June 30, 2013: + 21.74% net
RMHI under 20 holdings year to date as of June 30, 2013: +18.68% net
These numbers compare to the S&P 500 for the same time of +12.63%
According to Evestmentalliance.com our 20+ portfolios rank Top 5% nationwide for year to date small cap category.
This morning it was announced that National Technical Systems NTSC has been sold to Aurora Capital Group for $23 a share which is a premium of 38% over last nights close, our cost was in the $14 range.
This deal is expected to close by year end. Client shares were sold this morning for $22.83 a share.
Certainly takes the sting out of yesterdays decline
Brad
No position at the time of this post.
