It has been a few months since I’ve reported on my Special Situations Real Money Portfolio. The Special Situations Real Money Portfolio is actually my son’s Coverdell Education Savings Account that I set up on October 19, 2004 as an experiment. I wanted to see if an individual investor could earn stable returns from special situations and arbitrage opportunities similar to the opportunities Benjamin Graham called “stock workouts.” The experiment has been a huge success and was the motivation for me to create my premium service, Fat Pitch Financials Contributors Corner. Even though it has been a while since I’ve publicly discussed the Special Situations Real Money Portfolio, I’ve been busy investing in new opportunities all summer and the results have been phenomenal.
When I last reported on the Special Situations Real Money Portfolio in April, the portfolio had a balance of $34,683.37. By then end of May 2010, the portfolio’s value increased to $35,026.44. After the market closed on August 31, 2010, the portfolio has grown to $37,421.88. That’s a gain of 7.9% since the end of April.
So far this year, the Special Situations Real Money Portfolio has gained 20.96%. That is particularly impressive given that the S&P 500 index returned -4.6% over the same period.
Since inception on October 19, 2004, the Special Situations Real Money Portfolio has produced a total return of 211.85% (as of August 31, 2010). The average annualized rate of return for this portfolio continues to be an impressive 31.09%. This is just slightly lower than what I reported at the end of April.
Of the current $37,421.88 in the portfolio, I only held $3,805.31 in cash at the end of August. Yesterday, I invested almost all of that remaining cash in a new liquidation opportunity that I recently shared with subscribers of Fat Pitch Financials Contributor’s Corner. Find out my latest move by subscribing to a one year membership of Fat Pitch Financials Contributors Corner. Use the coupon code FPF10 to get $10 off an annual subscription purchased by September 3, 2010.
Over the next few days I will be detailing the results of all my recent trades that have resulted in my current 21% gain so far this year. Stay tuned by following the Fat Pitch Financials RSS feed or signing up for free email notification.