Monday, July 2, 2012

2nd Quarter Breakdown

I outperformed the SP500 this quarter, with my portfolio up 1.6% vs the sp500 - 3.29%.

As seen above, I was heavily overweight in basical materials and European consumer cyclicals which were the two biggest drags on my performance - cyclicals should see a strong recovery in 3qtr, as for consumer cyclicals; most of the position is a heavily weighted bet on a specific regulation in the U.S, so the deteriorating economics in the euro situation may be slowly putting a time limit on how long I can hold these positions - I will rebalance these positions at the end of this year.

I was able to stay afloat during the volatility due to positions in forex and options.  Options were long in the eurostoxx and they were up 20%+ and short positions in LULU that were added to post their negative earnings, and I will be looking to close off most of the position by the end of the 3rd quarter.

I took a long position in GS on Friday post the EU Summit points that relaxed rules for lending.