Week 8 Portfolio Update
My portfolio is down a little more than 5% since its inception on July 1st. Given the ill-time nature of that inception, that is not too bad. The TSX is down about 9% in the same time frame.
As I have previously discussed, this week I sold all of the Leader Energy Services from the Portfolio. I also sold my stake in Xenith Banchsares and half of my stake in Oneida Financial. I added to my position in Argonaut Gold on Wednesday when it dropped back below $6. I also added to OceanaGold on the same day.
My cash position is still lower than I want it, and it is lower in percentage terms than my cash position in my actual account. There are two reasons for this.
The first reason is that I keep adding to my gold stocks. I’ve built up a large position in Argonaut Gold now, and I have a reasonable position in OceanaGold again. I want to write up on both of these stocks at some point soon. For the moment suffice to say that Argonaut Gold is trading at a valuation below its peers yet has a above average growth profile for the next few years. OceanaGold is trading at a valuation well below its peers and its second quarter results, which crushed the stock, were not as bad as they look at first glance.
The second reason, which I have already alluded to in a previous post, is that in my actual account I like to trim positions over time, selling 10% every day or two, rather than all at once. This doesn’t work great in the practice account, because the amounts are small (its only a $100K account), and the commissions are higher (they are $9.95 versus the $6.95 that I actually pay).
In the first month I was following my account moves exactly and I found that I spent over $200 on commissions in the practice account. That’s over 2% of the portfolio annualized. So that wasn’t going to work.
Therefore, in the practice account I have decided to buy an sell stocks in larger blocks. The downside of this is that I can end up with smaller or larger positions in the practice account than I would like. This is the case at the moment. In my actual account I have smaller position percentage-wise of Equal Energy, Lydian International, and Arcan Resources right now. I have a larger position of Jaguar Mining where I have been buying on dips in small amounts.