Sector Allocation Comparison - 60 Days

Since there is no easy sector analysis tool in Marketocracy.com I have to do this work by hand; but I like to look at the portfolio by sector quite often. Since we have a small window here where the fund is not 30% cash, 20% short and actually own some long exposure, I thought I'd take a look at where the allocations stand today versus the last time we looked in early July. We did not know it at the time but that was the beginning of the "end" for commodities. Below I have a side by side comparison of sectors, followed by 2 pie graphs.

As we see there are 2 new categories we now list, which are Healthcare and Retail (I threw the 1 restaurant we own in retail as well) The coal, fertilizer, and oil services allocation of "now" are also misleading because these were upped significantly in the past 2 sessions, so they obviously lagged far below what is currently showing for much of the past month, but it's a "snapshot". Ironically, the fund's financial and homebuilding exposure back then was higher and in a twist of fate I probably unloaded those a bit too early, as the lows in those groups came within 10 days. I remember taking a lot of punishment in those sectors then as I was positioned for a counter trend rally that seemingly never came - how quickly things can change. Oh yes - and why were the markets so weak, especially financials, back then? Two friends call Fannie/Freddie ;)

Technology is another other group with a huge variance - this was before I culled Ciena (CIEN) which was a name added to give us more technology exposure. Remember at the time, technology was the "safe" place to be as it was where the hedgies ran each time oil faltered. We have much lower allocations in Apple (AAPL) and Research in Motion (RIMM) as well due to chart conditions but added a bit to the latter Friday as well. Metals has been severely reduced with some sales, most notably Vale (RIO), and natural gas is out the door (although I could see a near term rally in that sector since it is so beaten). Obviously cash is far higher, and retail is a newer allocation.

9/5 Allocation (click to enlarge - sorry it is hard to read)

7/6 Allocation


Where we are in 60 days from now is anyone's guess with this market of no memory and random action, but I'd expect sustained high cash, and a lower long exposure as we are currently in the "darting in" portion of our "dart in and dart out" strategy. My one concern is this market has a nasty habit of doling out punishment to every sector and with healthcare's "relative" outperformance, it might get a visit from the Grim Reaper on the next leg down (if there is another leg - of course).