Sunday, April 3, 2011

Portfolio UDC - 2011 Q1 Performance

The Utility Dividend Capture Fund just completed it 7th quarter of operation.

Detailed information on the objective, approach, and returns of this fund can be found at

In summary, the objectives of this fund are
- absolute quarterly returns of 2+% in quarters when the stock market is up and 0% when the stock market is down.
- to be less volatile than the stock market.

This objective is to be accomplished via trading in and out of 15-20 utility stocks around their dividend x-date to capture about a 1% return from the dividend and relying on market ineffeciency to be able to loose less than that amount via capital gains.

For the seventh quarter in a row this fund achieved its objective.
  • The fund returned 2.6% in total this quarter
  • The return was comprised of 5.9% in dividends and a loss of 3.3% in capital gains
  • 17 trades were made. 13 or 76.5% of them were winning trades
  • daily standard deviation of the fund was .44, which was about 25% less than the XLU etf.
Over 7 quarters of operation, the fund has consistently met its objectives
  • Averaged 3.5% in returns
  • Never had a loosing quarter!
  • Had 94 of 127 winning trades for a 74% win rate.
  • Low daily volatility. A SD of .61% which is 33% less volatile than the XLU etf.
  • Low quarterly volatility. A SD of 4.21% which is 47% less volatile than the S&P.

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