 Thank you everyone for your support. We're off to a great start!
We launched the Kinetic Financial Beta site and the Model Portfolios on Oct 1st, 2006.
The Model Portfolios serve three purposes:
- Investors can mimic our investment strategies by following the buy & sell transactions in the Model Portfolios.
The Model Portfolios are based on our mutual fund recommendations. The performance of the Model Portfolios compared to the indexes shows the quality of our fund recommendations over time. The transactions in the Model Portfolio reinforce our mutual fund recommendations. Investors can see the recent transactions in our Model Portfolios to get a sense of what to buy or sell in their personal portfolios.
Here is the performance of the Kinetic Financial Model Portfolios for Q4 2006: Here is the performance of various indexes during Q4 2006: SPY (S&P 500 index): 6.61% IWM (Russell 2000 index): 8.83% DIA (Dow Jones index): 7.26% EFA (MCSI International index): 10.36% EEM (MCSI Emerging Markets index): 19.64% Nasdaq Composite Index: 7%
Kinetic Financial builds up positions in Mutual Funds with strong Risk/Reward profiles over time. If the Risk/Reward behavior of a fund changes, we reduce our holdings in that fund in favor of a funds with a better Risk/Reward profile. Consequently, the Model Portfolios will tend to underperform broad indexes during a period where there is change of market leadership (growth vs. value, international vs. domestic, large vs. small, etc). However, the Model Portfolios will tend to catch up and surpass the indexes by investing in funds with high alpha (excess returns), as long as current market leadership is sustained for some period of time.Labels: model portfolio performance, year end review
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posted by Ramesh Agarwal & Team @
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