Global Opportunities New Highs

12 of the 27 stocks held in our Global Opportunities portfolio are trading at or near their 52 week highs:

ABC, AFL, AMGN, BAM, BIIB, BK, CELG, DASTY, KMB, LXP, V and BHP

I think that is pretty remarkable. Most of these stocks we’ve owned for some time (some of them for years) and we aren’t momentum traders so this isn’t a matter of just adding a bunch of stocks that have already gone up. We’ve had a pretty good year with the portfolio although in retrospect we may have been too cautious at the end of the year. We’ll have a full performance update soon after the end of the year.

Click here to learn more about our Global Opportunities portfolio.

For information on Alhambra Investment Partners’ money management services and global portfolio approach to capital preservation, Joe Calhoun can be reached at: jyc3@alhambrapartners.com or    786-249-3773.

On December 19th, 2012, posted in: Global Opportunities, Markets, Model Portfolios, Stocks by Tags: , , , , , , , , , , , ,
2 Responses to Global Opportunities New Highs
  1. John Maynard Keynes' Ghost
    December 21, 2012 at 10:23 pm

    Are Alhambra’s Chiefs throwing in the towel on Modern Portfolio Theory? Are you stock pickers now?

    Reply
  2. Joseph Y. Calhoun
    December 22, 2012 at 10:32 am

    We’ve been running an individual stock portfolio since late 2008. I started the portfolio after the crisis because while I’m a believer in a weak version of the efficient market hypothesis, I felt that the crisis offered an opportunity to outperform the market. The sell off of 2008 was panic driven and indiscriminate. As such, I felt there were likely securities trading at discounts to intrinsic value and a stock picker stood a higher probability of outperforming than at more normal times. That has proved largely true I believe as the portfolio has outperformed the benchmark over that time by a good margin. In addition, it is a fairly concentrated portfolio of 20 to 30 stocks and therefore somewhat more risky than owning an index fund. All the studies I’ve seen show that while asset allocation is the dominant characteristic for portfolio returns, stock picking and market timing do have an effect. It is just that the effects are small relative to asset allocation. As I said, I think the panic selling of 2008 likely meant there was a window where those metrics were relatively more important than in more normal times.

    Reply

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