Friday, February 22, 2008

Bookkeeping: 'Rising Tide' Performance Week 29

Week 29 performance of the mutual fund

Comments: Quite a funny (shortened) week, which we will call the Tale of Two Weeks. The first part of the week was Tuesday through Friday 3:30 PM. The second part of the week was the last 30 minutes of trading Friday. The S&P 500 rallied 1.8% in the span of 30 minutes on the Ambac (ABK) bailout plan (err I mean "capital infusion by very generous and helpful banks plan")... so a week that was looking at a 1.6% loss suddenly turned into a 0.2% gain for the main index. And this shows why this market is not easy for bears nor bulls. :)

Outside of that statistical anomaly this week has played out very similar to the past handful... more bad economic news, more denial of that bad news by ardent bulls, more pointing to "all problems will be fixed in 6 months", and more churning in the stock market (up/down/up/down) which is leading us nowhere fast. Every time we near S&P 500 level 1320 we find a reason to rally, and every time we near S&P 500 level 1370 we find a reason to falter - it's been this way for a month now. Nothing new or insightful to report on the market as a whole.

The fund results relative to the market were looking fantastic (beating indexes by 2%) until 3:30-4:00 PM Friday when the market closed the gap in a huge way. I just cannot keep up with a 1.8% gain in 30 minutes. :) But we were up all week even as the market was down; and still outperformed the indexes for the week, even with their mad dash rally in the closing moments. Rising Tide Growth Fund gained 1.0%, vs gains of about 0.25% in both the S&P 500 and Russell 1000.

Price of Rising Tide Growth: $11.345
Lifetime Performance to date (vs Aug 3, 2007): +13.45%

Comparable S&P 500: 1,353.11 (-7.65%)
Comparable Russell 1000: 738.44 (-7.25%)

Fund return vs S&P 500: +21.10%
Fund return vs Russell 1000: +20.70%

Last week's results here.

Since the market cap of the median stock in the Rising Tide Growth fund (median $9.8 Billion as of November 07) is significantly below the SP500 index (median $13.1 Billion as of September 07) but higher than the median market cap in the Russell 1000 (median market cap $5.8 Billion as of September 07), I am measuring the fund against both indexes. Click here to see all fund's holdings as of January 2008.

Basis for indexes is 5 day weighted average of closing prices Aug 3-9
SP500 : 1,465.2
Russell 1000 : 796.2

To see why I use the 5 day weighted average of the first 5 trading days to smooth out the volatility of the indexes as the fund launched, see here.

Please click here: fund performance for previous updates

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