Value Aligned Weekly Review, April 9, 2013

Berk:

The Buy and Hedge Fund called the Value Aligned Fund is up +8.1% for the year. It was down -1.0% last week. That compares to other stock hedge funds that are up 4.5% and down -0.8% last week. 

The Buy and Manage Folio account is called the  ValueAligned Portfolio (VAP) -- it is up +11.3% so far this year, down only 0.2% last week, which compares to the S&P 500 with its dividends reinvested up +9.5%, down -1.0% for the week.

So the jitters returned as the first quarter came to an end last week, investors were sad to see the quarter go out, because, like last year, the market posted big gains over the first three months of the year.

Unbelievably, the market increase to start 2013 looks almost exactly like the start it had in 2012.  Last year the index also saw a decline in the first week of April just like we saw last week. And that has made investors jittery bulls, because as we all know, the index continued to sell off from April through the end of May last year, and by early June, it had erased all of its first quarter double digit percentage gain. 

It seems like everyone remembers well what happened last year and is positioned accordingly, and when everyone is expecting something, it usually doesn't happen.

Nevertheless we are heeding the warning of the unbiased Sentiment indicators and remain 55% net long in the Hedge Fund