Fat Pitch Financials Portfolio November 2008 Update

Sadly, there was no improvement for the Fat Pitch Financials Portfolio in the month of November. The portfolio ended November 28, 2008 with a balance of $848,439.73. This is down 8.1% since the end of October.

I originally started this paper portfolio at Marketocracy with a balance of $1 million back on September 21, 2004. Until this current financial crisis hit, I had kept this portfolio above water. Since October, however, the portfolio has struggled to stay in positive territory. I guess I shouldn’t feel too bad about this, since I’ve been reading a steady stream of articles on Value Investing News of professional value investors also facing huge portfolio declines this year.

Year-to-date the portfolio is down 39.5%, very close to the S&P 500 decline of 37.7% over the same period of time. The most disappointing performance statistic is the portfolio’s total return since inception. The Fat Pitch Financial Port is down a total of 15.39% versus -13.83% for the S&P 500. My alpha has dropped to zero and my annualized rate of is -3.91%.

There were no trades in the month of November. I was tempted a few times to enter the fray after a few of the big declines, but each of the rallies after were based on insignificant news events. I think tax loss selling in December will continue to suppress the market and allow me more time to make wise picks. Since nothing has changed, the table below of the current portfolio holdings and their current returns will look similar to the one posted last month, but with larger losses:

 Symbol  Price  Shares  Value  Gains  Current Return
 KFT  $27.21  2,000  $54,420.00  $-5,678.60  -9.45%
 MSFT  $20.22  8,220  $166,208.40  $-25,978.52  -12.95%
 WFC  $28.89  1,400  $40,446.00  $-8,344.60  -17.10%
 USB  $26.98  2,940  $79,321.20  $-20,761.40  -20.74%
 PFE  $16.43  2,010  $33,024.30  $-17,024.70  -34.02%
 WEST  $8.35  5,770  $48,178.92  $-26,864.46  -35.80%
 LENS  $2.35  12,140  $28,529.00  $-17,714.51  -38.31%
 WU  $13.27  2,290  $30,388.30  $-19,555.23  -39.07%
 EBAY  $13.13  2,760  $36,238.80  $-23,913.25  -39.75%
 BR  $11.40  2,600  $29,640.00  $-20,540.00  -40.93%
 MHP  $25.00  1,610  $40,250.00  $-29,868.70  -42.60%
 BID  $9.94  5,540  $55,067.60  $-70,077.18  -56.00%
 MWRK  $8.18  6,710  $54,887.80  $-93,817.54  -63.09%
 USG  $9.45  1,080  $10,206.00  $-40,070.16  -79.70%
 PRXI  $0.76  13,610  $10,343.60  $-49,776.23  -82.80%

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

3 thoughts on “Fat Pitch Financials Portfolio November 2008 Update

  • December 1, 2008 at 11:37 pm

    I’d have to agree with you on the selling through the end of the year, but I think the media fanfare when Obama takes off with deep value investors looking to jump in at the start of the tax year, with hopefully a better than feared Christmas buying season should lead to a good new year.

    Always too optimistic,

  • December 2, 2008 at 8:26 pm

    I like the portfolio. I own quite a few of those stocks myself. I have a question about USG. I had owned it a year ago but sold it because I wasn’t sure about their financial health. What are your thoughts on USG?

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