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Twitter Top 10 Portfolio Up 22.68% This Year

Our Twitter Top 10 portfolio had another great month in April gaining 6.12% while the S&P 500 Index (SPX) gained 3.9%.  For the year the portfolio is up 22.68% (specifically from the close on January 4th since we make portfolio adjustments on the first Friday of every month). These gains came over a four month period where the stock market has been in a relentless up trend so we’re almost hoping for a correction just to see how the portfolio performs.

The largest gains in the portfolio came from Yahoo (YHOO), Starwood Hotels (HOT), Nike (NKE), Visa (V), Ford (F), and Green Mountain Coffee Roasters (GMCR).  All of them were up over 7.5% with Ford as the leader with gains over 11% in the month.  The only loser this month was VMware (VMW) which was down 3.13%.

Twitter Top 10 Portfolio Performance 5/3/2013

Four stocks stayed in the portfolio from last month; Ford, United Parcel Service (UPS), Starwood Hotels, and Visa.  The new additions for May are LinkedIn (LNKD), 3D Systems (DDD), Johnson & Johnson (JNJ), Starbucks (SBUX), Coach (COH), and Coca-Cola (KO).

LNKD illustrates one of the failings of a mechanical portfolio.  It had great sentiment reading throughout the month then gave poor forward guidance with their earnings report on Thursday which caused the stock to fall 13% on Friday.  As a result, this probably isn’t the best time to make a purchase in the stock.  However, since this is a mechanical portfolio it gets included.  The only exceptions we make are if a stock is in the process of a buyout or some other position where the price is likely to be fixed until the deal is complete.

Another characteristic of mechanical investing is adding stocks to the portfolio that are in the process of peaking.  For example, this month JNJ and KO are being added just when it appears that money managers are rotating out of consumer staples.  These probably aren’t stocks that most people would be adding to their portfolios at the current time.  Nevertheless, our intent is to illustrate what happens if you simply buy the most bullish stocks on Twitter each month so they’re included.

Below are the details from last month.

Start Date Symbol Shares Start Price Start Total End Price End Total % Gain / Loss
4/5/2013 $BBY 610 25.45 15524.50 26.52 16177.20 4.20%
$YHOO 482 23.3 11230.60 25.07 12083.74 7.60%
$HOT 173 60.14 10404.22 65.21 11281.33 8.43%
$NKE 190 58.97 11204.30 64.55 12264.50 9.46%
$V 68 165.16 11230.88 179.54 12208.72 8.71%
$F 903 12.44 11233.32 13.83 12488.49 11.17%
$GMCR 214 53.23 11391.22 58.08 12429.12 9.11%
$VMW 146 76.91 11228.86 74.5 10877.00 -3.13%
$UPS 130 83.54 10860.20 86.09 11191.70 3.05%
$MU 1207 9.31 11237.17 9.63 11623.41 3.44%
Cash 52.3 52.3
Totals 115597.57 122677.5 6.12%



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2 Comments  comments 

2 Responses

  1. jake

    great work! wondering if these are what you are in now and when you acquired them….thanks so much.


  2. DownsideHedge

    Jake, these stocks were bought at the close on Friday. Here’s some background and the holdings for the first four months of the year.

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