Here’s the monthly portfolio update for the BTI portfolio which consists of 2 accounts: a TFSA account and a Non-Registered account.
The??TFSA??is currently holding the following stocks (December 30 closing prices):
(A??Tax??Free??Savings??Account is an account where your capital gains are exempt from taxes)
Market Value: $10,675 + $86 in Cash = $10,761
The Non-Registered account is currently holding the following stocks:
Market Value: $3080 + Cash: $25 = NET: $3,105
BTI Portfolio Value: $13,866
YTD Results from January 1 2011
TSX at start: 13,443 @December 30: 11,841 Change:??-11.91%
BTI at start: 24,926 @ December 30: 13,866 Change:??-44.37%
HELOC Portfolio Performance
The HELOC portfolio is basically a non registered account with money borrowed from my home equity line of credit. I will use the bank’s ‘Performance’ tool for the monthly results when possible because it takes into account deposits and withdrawals. On to the results:
Yearly Review
Up until the end of June 2011, my portfolios not only survived the market turbulence we saw in H1, I was actually ahead of the market. But then came the political deadlock in the US with the debt ceiling, the European drama was amplified and SkyWest Energy’s share price collapsed never to recover resulting in an ugly ROI for 2011. My portfolios on a whole would have been in a much better shape if it wasn’t for SKW’s weighting and dismal performance but this is what happens when you don’t cut your losses early (my fault) and when you fail to detect a management team in distress (not sure I can blame myself for that). Speaking of SKW’s management team, I am glad their careers are over!
My TFSA had a total of $7500 in contributions and it is now sitting at $10k after hitting a high of $17k in February. My Non-registered account has been decimated; the original investment was $3k, it hit a high of $11k in February and tumbled back to $3k. What do they both have in common? A sizeable amount of SKW. Mistakes are inevitable and this has been my mistake in 2011. Both accounts, starting with the TFSA, will be transferred back to my bank this year as I like to consolidate my holdings in one place. This means I might be dropping them from the monthly updates and just focus on my HELOC for tracking.
My HELOC portfolio has fared much better (relatively speaking) and I am slightly optimistic for 2012 even though I expect the same level of volatility. As long as oil prices stay strong, I will be investing in oil stories. This is something you might have noticed, I invest in stories (fundamentals) knowing full well that at the end of the day no system is perfect.
While I don’t want SKW to hijack the post, I am glad the merger went through with Marquee. The company is now lead by veteran oilman Richard Thompson and is currently trading below $30k/boed on a 2,800 boepd basis (~48% liquids). I increased my position in Marquee and brought the average price down substantially in my HELOC, is this my mistake in 2012? I dont think so as I consider Marquee a new company and I will discuss it in a post by itself.
Eagle Energy Trust has been a bright light and in principle I look forward to enjoying my 12% dividend in 2012 and beyond as long as WTI oil prices remains above $80 US. Xtreme Coil Drilling is showing strength but I am truly looking forward to their next update as there are several catalysts in the pipe. REL and HYX should recover if markets breathe a little bit as they have executed nicely in 2011. I reduced my position in AVF from 3,000 shares to 2,000 shares back in November (sold @$5.51 for a loss of $100 excluding divvies) in order to recycle the money into EGL.UN at the time. AVF remains a favorite of mine and has been part of my portfolios for years.
Finally, good riddance to 2011, I have been squarely beaten by the index. No point in playing the blame game, what matters now is to gear up for the next round. Numerous battlefields await in 2012, onwards March!
How did you do in 2011?