Closing Out 2011, Kicking Off 2012
Happy new year fellow investors! I hope you enjoyed the holidays as much as I did. It was great spending time with my family this past week, taking a break from work, and reflecting on the future.
2011 was a challenging year, especially for fellow investors and website owners. The long hoped for economic recovery hasn’t really materialized yet. Web ad sales have been terrible and interest in stock market blogs was flat at best.
Thankfully, the portfolios I track for Fat Pitch Financials did pretty well in 2011. The flagship Fat Pitch Financials Port that I track at Marketocracy returned 5.98% last year. Since inception, it is up 56.58% or 6.35% annualized. The Special Situations Real Money Portfolio had a rough year, but it was still able to return 7.14% in 2011. Since inception, the Special Situations Real Money Portfolio is 187.7% or 25.4% annualized! Finally, the Workouts model at Covestor recovered nicely in the last quarter of 2011, so it was able to return 9.51% in 2011. Since inception, it is up 7.07% or 6.01% annualized (Edit: Workout model numbers updated with end-of-year results). My hope that in 2012 I will start attracting some subscribers to the Workouts model now that it is starting to outperform the market.
I plan on kicking off 2012 with a return to fundamentals. I recently finished reading Quantitative Strategies for Achieving Alpha by Richard Tortoriello. My favorite investment tool, StockScreen123 also just upgraded its backtesting function to include dividends in returns, four new benchmarks that include dividends (total returns), and a new screening function for examining stock splits. I’m planning to combine what I learned in Tortoriello’s book with the new features of StockScreen123 to create a series of posts that examine how well the fundamental ratios most watched by value investors performed over the past decade. My end goal is to create a Ted Williams style strike zone chart that will show me when to swing for the fat pitch stocks in 2012.