2010-07-01

June Performance

Index

June%

YTD %

S&P 500 TR

-5.23

-6.65

MSCI EAFE

-1.16

-14.72

上海 Shanghai

-7.48

-26.82

Fund



Entertain.Trends

0.01

8.84

Green Dragon

1.54

5.30

Best of Funds

0.19

1.18

Pharma & Dogs

1.09

4.18

China Fund

-2.77

-5.50

SoftwareSecurity

-0.23

4.35

Yield to Me

0.13

-0.67

Catch a Falling Knife

11.13

-8.84



Another bearish month and another decent performance from my model portfolios. These have mainly been on autopilot this year, turnover has been low for all but the "Best of Funds" portfolio, but that's the one I most actively adjust. Turnover was almost 10% last month as I went in and out of gold miners and short ETFs, and turnover was 300% in the past year. Turnover has been high in general in the past year, however, due to playing the short-side with inverse ETFs.

Right now, my single largest position is ProShares UltraShort Euro (EUO). I have a monster position in "Best of Funds", but it is a smaller position across almost all the portfolios. At the moment, it is my highest risk-to-reward trade, given my high expectation for continued euro weakness in the long-run. Generally it does not pay to hold a leveraged or inverse ETF due to the negative effects from compounding the daily value reset, but the (generally) low volatility of currency movements results in a much smaller performance drift. Also, this compounding works in the investors favor when the position is moving consistently in the investor's direction.

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