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JER Investors Trust Inc. Message Board

  • dwshelf dwshelf Nov 4, 2007 2:40 PM Flag

    diversified portfolio

    So let's see how this turns out.

    Imagine we're attracted to JRT, but want some diversification. After all, we're investing a cool mil, don't want to take much risk.

    So we pick five high income stocks:
    CSE JRT NRF RAS RHY
    Average yield, a cool 20%. We're gonna drag in $200k over the next year on our portfolio.

    Portfolio holds $200k of each stock, based on Friday closing price. 20618 shares of JRT. Dividends will not be reinvested, need that $200k to maintain lifestyle in retirement.

    I'll be reporting on the progress.

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    • may I suggest swapping out of RHY and into AFN? Just announced another .25 divi and look to be solid in the future.

    • Take it as the bottom, or a sign of things to come.

      RHY, the big loser of the portfolio at -33%, actually rises for the day.

      RAS collapses at almost -10% on the day.

      JRT about half that bad.

      Portfolio down 4.36% on the day. Down 8.17% since it was purchased on 2 Nov. Looked cheap.

      NRF is the only one in the money, +3.26 overall.

      JRT just below even.

      • 1 Reply to dwshelf
      • >Take it as the bottom, or a sign of things to come.

        That turned out to be a sign of things to come.
        Overall, $1M portfolio is down almost 25% since purchase in early November.

        CSE 12.24 $152,241.12 Down 23.88%
        JRT 8.24 $169,892.30 Down 15.05%
        NRF 7.39 $178,719.76 Down 10.64%
        RAS 5.64 $150,198.80 Down 24.90%
        RHY 2.99 $103,104.17 Down 48.45%

        - - - -
        Total: $754,156.21 Down 24.58%

    • Don't look now, but the "diversified" portfolio went underwater yesterday, and lost more today.

      Mostly due to continued weakness in RHY, down 22% since 2 Nov last year.

      JRT and RAS are down, a bit.

      CSE finally shows leadership. Up 6%, with NRF up 4%.

      Summary:
      $1M on 2 Nov now worth $972,609.95
      Not counting dividends, which probably make things about even.

    • You haven't reported in a while, so I thought I would. The portfolio is down a bit in the wake of RAS' ex-div fall, but JRT and others have picked up some of the slack such that we are still considerably in the green, at $1,104,045.73, a 10.41% return since Nov 2 and a 60+% annualized return.

      CSE is up over $2.00 a share in that time. JRT is up nearly $3.00 a share over the same interval. NRF is up 74 cents a share at $9.37. RAS is up $1.52 to $9.03. Only RHY is currently showing a loss, down $1.16 since the model portfolio was created.

      Fun.

      • 1 Reply to davisfoulger
      • Cool. I was going to keep reporting, but on a slower basis.

        By my calculation, it's even better (a tad).

        The portfolio was created over a weekend, using closing prices from Friday. NRF went ex on Monday, meaning that they were already ex on the weekend. Thus, their price in the portfolio is reduced by .36, to $8.27 (24,184 shares).

        JRT, up a whopping 31%, leads.
        RAS, +20%, NRF, +13%, and CSE, +13% in the middle.
        RHY, -20%, lags.

        Overall: +11.35%, in less than two months.

        I've made real money. I hope y'all have too.

    • +5.75% on Thursday.

      RAS goes from $9 to $10.

      Happy Days are Here Again.

      Well, we have to ignore the fact that two positions remain underwater (RHY and JRT). But the whole portfolio is well on track: $1,125,287.29, or up 12.5% in just over a month.

    • Ahoy! +4.36%

      Portfolio now back in the green, up $43,028.11 on the day.

      NRF and RAS in a dead heat for leadership, up 9.5% over November.

      JRT nearly flat, while the "relatively safe" CSE remains down 3.75% even after being up 6.8% on the day.

      Portfolio value:$1,030,748.88

    • +2.59%. All green.

      Short session is anything but listless for the distressed income stock portfolio.

      All green all over. Portfolio nearly back to unch overall.

      NRF up nearly 5% on the day, takes over portfolio leadership.

    • -2.44%. Six days in a row down.

      RHY again leads downward, -4.9%, despite a 25%+ yield.

      NRF was actually up 1.8% on the day.

      RAS surrenders well over half of the gain it held yesterday.

      Portfolio value: $959,532.58

      In fairness, many real portfolios have done far worse. Perhaps most.

    • -1.28%

      Well off of intra-day lows.

      The race tightens up, with RAS giving up nearly half of its gains.

      RHY continues to move upward, although still nearly 5% below purchase price.

      Portfolio value:$983,533.09

    • -2.36%. Overall now red.

      While creating the portfolio, I added CSE as a "balance" RHY, it appeared relatively strong while RHY seemed relatively week.

      Today CSE slipped into last place in the portfolio (although JRT held that spot intra-day).

      Portfolio value: $996,271.68

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