OFFSHORE MODEL PORTFOLIO PERFORMANCE

Approximately a month ago, I posted the holdings of our Offshore Model Portfolio. As was the case with the local recommendations that I had made, the time has come to measure the progress and growth that our offshore portfolio has experienced over the last month. I have opted to illustrate the progress made by making use of 3 simple graphs.

The portfolio consists of 11 stocks that were all equally weighted when we started the portfolio last month. At inception, the portfolio asset allocation looked like this:

It is now just over a month down the line and we are still holding all of the positions that we entered into on the 16th of August 2012. With the majority of the positions entered into being in the money (in profit), we are happy to hold all the positions until something fundamentally changes that will prompt us to close an individual position. Naturally, we will take profit at some point, but until that time is upon us, we still hold the portfolio exactly as we bought it. Now however, due to the price fluctuations of our investments, the asset allocation looks a little different:

When looking at the individual stocks that are in our offshore portfolio and how they have performed, the following chart will prove helpful:

You will notice that the overall portfolio is up 2.57% since its inception a month ago. Note that the percentage growth calculations include brokerage on the leg out of the market, so if we had to close all of the trades now, the percentages above would be correct. With the trades still open and no brokerage having been paid on the leg out yet, the current profits are slightly larger and losses slightly smaller. I like to compensate for the leg out of the market so that it gives me a better indication of actual performance and does not leave with any nasty surprises.