Fat Pitch Financials Port 2008 Performance

Now this is the perfect post for Friday afternoon when no one is looking. It kind of reminds me of the late Friday SEC filings that companies like to post when they have bad news to report. The Fat Pitch Financials Port numbers were simply ugly for 2008.

In 2008, the Fat Pitch Financials Port lost -38.33%. This is not the type of performance I expected, but the S&P 500 also returned -37.00% according to the statistics provided by Marketocracy. Thankfully, the last month has been much better. The Fat Pitch Financials Portfolio gained 8.87% in December, but the S&P 500 returned 10.97% over the same period. As you can see in the chart below, the Fat Pitch Financials Portfolio has been following the major indexes closely.

The one positive thing to report is that over the last quarter the portfolio returned +8.87% versus +10.97% for the S&P 500. I’m hoping this is a sign that I’ll break free of the S&P 500 and start on a positive trend. I still have a 15% cash position to put to work and help this portfolio climb out of the hole its in.

Below is a list of the portfolio’s current positions and their ugly return numbers:

Symbol Price Shares Value Gains Return
WEST $12.39 5,770 $71,490.30 -$3,553.08 -4.73%
KFT $27.28 2,000 $54,560.00 -$5,538.60 -9.22%
MSFT $20.11 8,220 $165,304.20 -$26,882.72 -13.40%
WFC $29.56 1,400 $41,384.00 -$7,406.60 -15.18%
USB $24.84 2,940 $73,029.60 -$27,053.00 -27.03%
PFE $18.16 2,010 $36,501.60 -$13,547.40 -27.07%
BR $14.05 2,600 $36,517.00 -$13,663.00 -27.23%
WU $14.97 2,290 $34,281.30 -$15,662.23 -31.29%
EBAY $14.57 2,760 $40,213.20 -$19,938.85 -33.15%
LENS $2.36 12,140 $28,650.40 -$17,593.11 -38.04%
MHP $24.27 1,610 $39,074.70 -$31,044.00 -44.27%
BID $9.42 5,540 $52,186.80 -$72,957.98 -58.30%
DEST $8.12 6,710 $54,485.20 -$94,220.14 -63.36%
PRXI $1.21 13,610 $16,500.76 -$43,619.07 -72.55%
USG $8.40 1,080 $9,072.00 -$41,204.16 -81.96%

Finally, I should report the performance numbers since inception. The Fat Pitch Financials Port has returned -13.76% so far versus -12.91% for the S&P 500 over the same time period. This comes out to a negative 3.4% annualized return. Not the type of investment returns a value investor hopes for, but I also have to remind myself that this portfolio is only four years old. Several professional value investors have also struggled over these past few years. I’m going to be working real hard in 2009 to boost the five year performance numbers for the Fat Pitch Financials Portfolio. Return here next year to see if I’m able to turn this portfolio around.

Disclosure: I own shares in all the companies mentioned in this post.

4 thoughts on “Fat Pitch Financials Port 2008 Performance

  • January 3, 2009 at 2:26 am

    This reminds me of my portfolios performance over the past twenty or so years. I eventually came to realise that I was like most actively managed fund managers – unable to consistently outperform the market average. Even though you aren’t paying a manager 1%+ in fees when you DIY, you do end up spending time in research, admin (tax returns etc). So these days I only dabble with investing in individual stocks and are moving to a core-and-satellite portfolio strategy where I’m increasing the allocation to Index funds in my investment portfolio (100% in a asset-class-diversified Index fund for my retirement account, and around 16% stock Index funds and 15% cash in my stock portfolio). I’ll slowly sell off my individual stocks as the market recovers and allocate more to Index funds. I currently have around 25 stocks and will cull this down to a handful that I’m *certain* will outperform the market over the long term. The other thing I’ve learned over the years is that you could boost performance a lot by just eliminating one of two losers from your portfolio than by trying to find more new potential winners.

  • January 3, 2009 at 2:30 am

    “I’m going to be working real hard in 2009 to boost the five year performance numbers for the Fat Pitch Financials Portfolio.”

    As one investor to another, I am wondering what your initial plans are to boost the returns?


  • January 10, 2009 at 11:17 am

    I hope you manage to turn things around in the coming years. Remember, it’s the score at the end of the game that counts, not how many runs your down in the 4th.

    Also, take no consolation in other value investor’s poor performance. Their suck doesn’t make your suck any better.

  • January 13, 2009 at 2:09 pm

    You should look into Covestor.com. It seems you like tracking your performance and they have a lot of cool graphs and such for displaying and analyzing. Just my 2 cents…

Leave a Reply

Your email address will not be published. Required fields are marked *