Portfolio Update – Down 0.20% in April 2013

My portfolio balances at close of trading on 30th April were:

Ticker Price (C$) Price Change Percentage Industry
POW.TO $ 27.13 n/a 6.9% Insurance
STN.TO $ 43.08 -3.73% 0.0% Services
TCK-B.TO $ 26.80 n/a 9.8% Materials
CSU.TO $ 137.50 10.11% 0.0% Information Technology
WPK.TO $ 18.74 -2.90% 0.0% Consumer Goods
MHP $ 54.49 2.86% 0.0% Services
YHOO $ 24.90 4.05% 0.0% Information Technology
CGL.TO $ 13.14 -7.59% 0.0% Gold Fund
XEM.TO $ 24.64 0.69% 0.0% Emerging Markets Fund
XIN.TO $ 20.29 4.53% 0.0% EAFE Fund
XDV.TO $ 22.15 -0.67% 0.0% Canadian Dividend Fund
XIU.TO $ 17.86 -2.62% 0.0% Canadian Equity Fund
S&P Fund $ 136.62 0.89% 12.4% US Equity Fund
Bond Fund $ 228.74 1.13% 34.1% Bond Fund
Cash 36.8% Cash
Total 100.0%

Overall my portfolio is down 0.20% since last month. There were no cash contributions. For comparison my TI Index is down 0.80%, the DOW is up 1.79% and the TSX is down 2.30%.

My investments have performed well against the TI and TSX indices, but not the Dow.  Winners this month include my EAFE fund (XIN.TO) up 4.53% and my speculative stocks such as McGraw-Hill (MHP) up 2.86%, Yahoo (YHOO) up 4.05%, and Constellation Software (CSU.TO) up 10.11%. Losers include StanTec (STN.TO) down 3.73%, and gold (CGL.TO) down a whopping 7.59%.

The big change this month was the sale of all speculative stocks, gold and non-value stocks.  As I wrote earlier this month, I am getting back to fundamental value investing.

My bond holdings are at 34.1%, which is a little more than my target of 33.5%, but acceptable. I have 36.8% cash awaiting deployment into value stocks as prices become cheaper.

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Taking Profits from Constellation, Selling Other Hodson Picks

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Back in early March I bought Constellation Software (CSU.TO) based on the recommendation of Peter Hodson.  The investment has done very well – up 12.7%.

I feel that this level of growth is not sustainable so it’s time to take profits.

  • Sell CSU.TO @ $135.27

My other Hodson picks – StanTec (STN.TO) and Winpak (WPK.TO) – have performed quite well.  They are both up 2% since purchasing them.  However, I am not really committed Screen Shot 2013-04-11 at 8.26.23 PMto them as part of my speculative portfolio.  I’d prefer to raise cash to invest in hotter, more speculative opportunities such as Lululemon (LLL.TO).

  • Sell STN.TO @ $43.69
  • Sell WPK.TO @ $19.74

Portfolio Update – Up 0.77% in March 2013

My portfolio balances at close of trading on 31st March were:

Ticker Price (C$) Price Change Percentage Industry
T.TO $ 70.16 -1.03% 0.0% Telecommunications
STN.TO $ 44.75 n/a 1.8% Services
BEP-UN.TO $ 29.77 n/a 0.0% Energy
CSU.TO $ 124.88 n/a 1.9% Information Technology
WPK.TO $ 19.30 n/a 1.5% Consumer Goods
MHP $ 52.97 n/a 1.9% Services
YHOO $ 23.93 n/a 1.5% Information Technology
CGL.TO $ 14.22 n/a 5.0% Gold Fund
XEM.TO $ 24.47 -2.59% 9.5% Emerging Markets Fund
XIN.TO $ 19.41 1.84% 9.7% EAFE Fund
XDV.TO $ 22.30 -0.93% 10.5% Canadian Dividend Fund
XIU.TO $ 18.34 -1.45% 10.2% Canadian Equity Fund
S&P Fund $ 135.41 2.50% 21.2% US Equity Fund
Bond Fund $ 226.18 0.44% 24.6% Bond Fund
Cash 0.7% Cash
Total 100.0%

Overall my portfolio is up 0.77% since last month.  There were no cash contributions.  For comparison my TI Index is up 0.77%, the DOW is up 3.73% (the DOW and S&P500 are at all time highs this month) and the TSX is down 0.56%.

My investments have performed adequately against these indices. Winners this month include my S&P fund up 2.50% and my speculative stocks such as McGraw-Hill (MHP) up 10.25%, StanTec (STN.TO) up 4.89%, and Constellation Software (CSU.TO) up 4.24%*. The main loser was my Emerging Markets Fund (XEM.TO) down 2.59%.

My bond holdings are at 24.6%, which is a little lower than my target of 25%, but acceptable.  My speculative portfolio is 8.5% of overall assets, which is less than my 10% maximum, and acceptable.

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*Note: The gains in these speculative stocks are not shown in the table above because they were bought after the previous month-end.

Buying the Hodson Portfolio

I have decided to go ahead and build a small portfolio of Peter Hodson’s top recommendations.  His recommendations are Canadian small cap stocks so they will be bought using the money set aside for speculation.  Rather than buying his most recent picks I have decided to buy his most highly rated picks (those rated “A” in his research).  They are:

  • Buy Stantec (STN.TO) @ $42.72
  • Buy Brookfield Renewable Energy Partners (BEP-UN.TO) @ $31.34
  • Buy Constellation Software (CSU.TO) @ $120.02

POSTMORTEM

Writing today, 30th March, this looks like a profitable set of trades: a good call.  The three holdings are up an average of 1.75% in a month.

One of the stocks, Brookfield Renewable Energy Partners (BEP-UN.TO) has not performed well and I have sold it.  The postmortem on that decision will be conducted in a later post.

Ticker Name Price Paid Today’s Price % Gain
STN.TO Stantec Inc. $42.72 $44.81 4.89%
CSU.TO Constellation Software Inc. $120.02 $125.11 4.24%
BEP.UN Brookfield Renewable Energy Partners LP $31.34 $29.92 -4.53%
Average Increase 1.75%