Thursday, January 15, 2009

Preview of Future "Performance/Portfolio View"

This week will be the last week I am using which is where I've held my portfolio the last year and a half; I've been running two portfolios concurrent the past two weeks. In the new tracking platform I can short, use limit stop orders, etc. The position sizes on the new site ( are smaller until I'm fully "ramped" in, but it's a close approximation to the account as of this moment in terms of positions.

The new website design will come out tomorrow night. In that new format will be a menu option called "Portfolio & Performance"

When you go there, readers will have a link where you can click on and go to my page - but all it will show you is the aggregate value of the account. It starts at $1M or $10.00 NAV. So that is verifiable by a 3rd party and can be checked by readers.

I was hoping all my positions would be "viewable" by 3rd party but that is not an option on Even the aggregate view is a "work around" - but we found a way to display it outside of having to be logged into my account. With that said, once a week I'll load in screen shots of the full portfolio (long and short positions) into that blog page so you see current positions.

It will look like this below (click to enlarge)

This will replace the "current positions" I have on the far right margin of the blog.

Now as I've been using this over the past 2 weeks I have to point something out: on the far right is "total gain/loss". This only shows the gain/loss of the OPEN part of the positions I own.

To showcase this I 'exploded' out my trades on FXP (you can see it above)

1/13 Bought 325 @ $43.19 (-$14,036)
1/14 Sold 225 @ $45.26 (+$10,184)
1/15 Sold 95 @ $47.52 (+$4,514)

So I kept what I call a "holding position" (5 shares or below 0.1% of aggregate portfolio value) and sold 320 of my original 325 shares.

So with FXP you can see it shows only a gain of $1.40 (0.65%) but that is only on the 5 shares of the original 325 I still hold. My gain is roughly 5%ish on what I sold out of, but similar to an online brokerage account, the +/- dollars and percentage only apply on the 5 shares I still hold, not the 320 I sold.

Hence you cannot see realized gains/losses in this format on each individual position - that obviously does gets funneled into aggregate portfolio value. You only see the gain or loss on what is "open" for each position. DUG is another example - I booked a very nice gain here the past week and a half in that position, but sold almost the entire stake this morning. It only shows a tiny gain ($21) as I only have 10 shares out of 500. That $21 is the gain on my last 10 shares. Same idea as FXP.

So no system is perfect but this will show you my total portfolio value (available any time for readers to check) and my open positions (as I load them each weekend).

From there, I am going to measure the FMMF performance versus the Russell 1000 every 4 weeks (13 periods a year). So far we're off to a roaring start just by staying "flattish" the past 2 weeks.

Again, this performance metric was what I set out to do a year and a half ago - I just could not find a platform that fit with what how I invest (both long/short - with stop losses, etc). This will be a platform that is much more reflective of my strategy, and readers can verify my performance as I originally intended.

p.s. ignore the annual return that provides since it prorates your short term performance over a 12 month period - I'm up 1.1% so far, not 68%.

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