It a gorgeous day here in Melbourne, 27C heading for 30C, absolutely wonderful for the first day of spring. It is too nice to be inside providing an update for the Fusion Investing Portfolio so I’ll post the headline results now and flesh it out later this week.

• With almost half the portfolio invested in index funds it is no surprise that we are now tracking the index performance. The outperformance now sits at 15.84% roughly the same as the last time I reported. 
• Individual position comparative performance has dipped into negative territory at -0.43%, i.e. if I had bought index funds instead of the stock positions I took at the time I took them, we would have been 0.43% better off. That is no surprise to me as since I stopped business consulting my outperformance has primarily been derived from timing, options trading and cash management rather than from any individual stock alpha. However, I believe I can do better and the comparative performance is often positive.
• Eight of 13 current positions are outpeforming the market, that’s 62%. When the two sold positions are included that rises to 10 of 15 or 67% outperforming the market.
• The worst performing position continues to be Great Southern TREES2, down 77%. With seven months to go, these debt securities are being priced at a 17% chance of GTP not folding before then.  Realistically it is all or nothing from here for TREES2 holders. At the current price of $17 and two payments of around $3.30 to come and a face value of $100, there is some very enticing upside to go with the 100% possible loss.
• The fund was early buying into the Australian banks, yet all three positions are currently ahead of the index.
• The worst performer on an adjusted currency comparative basis is the funds first purchase of Suntech Power.

I think the results are pretty good, especially considering the limited time I put into managing the portfolio.

I’ll upload the spreadsheet and PDF in the next day or two and possibly both more commentary on the positions and way forward for the portfolio.

Related posts:

1. Fusion Investing Portfolio Update
2. Fusion Investment Portfolio Update – July 2009
3. Fusion Investment Portfolio Update – August 2009
4. Fusion Investing Fund Update June 2008
5. Portfolio Update come Investing Philosophy
6. Fusion Investment Fund Update