Tuesday, March 26, 2013. Here's a brief overview of where we are and a few news items. The Value Aligned Fund is up 8.5% for the year so far. That compares to other Stock hedge funds that are up 5.1%. For the month of March, the VAF is up 1.4% other hedge funds are up 1.2%.
The Value Aligned Portfolio (VAP) that is available to our clients on the Folio Institutional Platform is up 10.7% this year so far that compares to the S&P 500 with its dividends reinvested of 9.7%. For March the VAP is up 3.1% and the S&P 500 index is up 2.9%.Stock markets were little changed this week, as the S&P 500 returned -0.2%. Stocks fell on Monday and Tuesday as the country of Cyprus announced a tax levy on all bank deposits. The announcement freaked out worldwide markets as the S&P 500 returned -0.80% for the time period. Equity markets stabilized Wednesday and Thursday. On Friday the S&P 500 gained on additional news out of Cyprus; officials were debating other measures to raise crucial tax revenues besides their tax levy on bank deposits. As expected, the Federal Reserve announced their continuing involvement in supporting the economy as long as unemployment is above 6.5% and inflation is projected to be below 2.5%. Earnings season has been winding down, however, there were still several meaningful announcements.
The stock market as represented by the S&P 500 has moved up since early February but there are signs of waning momentum. For example, Net new 52-week highs are down, the percentage of stocks trading above their 50 day moving average is down and what we call the McClellan and the 21 day oscillators show less momentum (McClellan and 21 day oscillators are simply measures of momentum how much gas is left in the tank in the current directional move of the stock market.)
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