Never miss a trade! Sign up for MAXfunds Powerfund Portfolio’s FREE email alerts! CLICK HERE!

November 2002 performance review

December 15, 2002

The conservative portfolio was up 2.6% for the month of November, but the positive action was mostly from stock funds in the portfolio, currently 50% of the total after recent increases in its equity allocation. While we felt weakness in stocks have created opportunities for risk averse investors, and we were hesitant to stay in near-zero yield cash positions, we were a bit premature in these moves. 

The Bond standout was the Vanguard High Yield Corporate fund (VWEHX) up an sharp 4.41% as investors embraced higher risk investing once again. Surprisingly, REITs were strong for the month, with the SSgA Tuckerman Active REIT returning 4.38% in November. We say surprisingly as we have been negative on the Real Estate sector for quite some time, but continue to hold small positions in our safest portfolios as the funds product good income compared to other stock funds. 

Both of these funds are new additions, having recently replaced others in our model portfolios that have changed to a load-fund fee-structure. For the record, those former funds, if you are holding onto them until redemption fee periods expire, were up similar amounts. 

The FMI Sasco Contrarian Value fund rebounded nicely for a lower risk stock fund, and was up just over 6% for the month. The Conservative Portfolio as a whole is down just over 1% since we created it in April 2002.

The aggressive growth portfolio had a great month, up around 5.5% in November. 

The Fidelity New Markets Income fund jumped 3.63%, as emerging markets bonds continue a good year compared to other asset classes.

The Gabelli Global Telecom fund was up almost 13% for the month as investors embraced risky, beaten down stocks and bonds. 

Emerging markets were strong again, with the Dreyfus Emerging Markets fund up over 7%. 

We think this portfolio’s foreign bent will start benefiting us again (as it did earlier in the year) as the dollar seemed poised to sink to new lows. No fund was down in this portfolio, a rare event in a diversified portfolio and a sign of a strong month for investors all around. This portfolio is now down 8% since we launched it in April - not bad given the higher risk funds owned, and the market conditions during the life of the fund.