As you can see from the chart below, the Fat Pitch Financials Portfolio outperformed the S&P 500 this month as well as the other major indexes. The portfolio closed with a balance of $1,367,882.61 on November 30, 2007. My cash levels climbed up to $558,727.41. It’s really nice to have cash in the ready now to take advantage of any opportunities that develop in this volatile market.
The Fat Pitch Financials Port ended the month with a -0.24% return, but the S&P 500’s return was -4.97%. Over the past twelve months, the Fat Pitch Financials Port has returned 11.46% outperforming the S&P 500 return of 6.83% over the same period. Most importantly, my annualized rate of return is 10.2%, almost matching the 10.6% annualized return of the S%P 500 over the same period.
My best performing position this month was Western Sizzlin (WSZL). I’m already up 17.64% and I’ve only had this stock for a couple of weeks. Western Sizzlin first started out in my Special Situations Real Money Portfolio as a rights offering experiment. After learning more about the company, I’ve come to realize that this company is much more than just a restaurant. It is transforming into a capital allocating machine.
There was quite a bit of activity in November in addition to the addition of Western Sizzlin shares. I also profitably ended my positions in Merck (MRK) and Unilever (UL). I’m hard at work looking for new opportunities to invest some of the cash I’ve accumulated this month. Some depressed financials are starting to look attractive, but some of the risk in that sector is real and hard to estimate. My biggest challenge right now is finding time to sort through all the potential opportunities out in the market.