Yesterday was a pretty good day for our portfolio despite the fact that TLT just fell another big chunk to 129 ish. It seems to have found some support with interest rates on the 10 year being around 2%. Obviously our momentum portion is down about 6%-6.5% for the month. That’s about 25% of our portfolio. However, Our alpha portion is having a great month and is kind of making up for some of that loss. We’re down on the month but we’re inching closer and closer to break even. We had a good Jan so if we can eek out a small gain in Feb with all of this crazy volatility, I’d be v. pleased. I mean, the S&P is up 5%, down 4%, up 5% down 5%. The TLT is up 10% then down 6.5%. It’s not easy an easy environment especially with our pair trades of which haven’t been all that negatively correlated lately. Both SPY and TLT were moving down in sync. That causes pain in a pair trade. However, we are still doing well and we’re positive so I am happy about that. With a little bounce in TLT/REITs we’ll be very profitable over all.
I read a relevant article today. it starts off with “I got crushed last week. The accounts that I manage (for the most part) suffered losses and were down for the week. “.
That was us with our TLT/REIT portion. Luckily we have a well diversified set of strategies that work to offset each other in extreme times. The volatility this year is astounding and it’s a roller coaster ride watching our balance move.