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Strategies & Market Trends : Z PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (5929)	1/22/2001 11:39:21 PM
From: DanZ	Read Replies (1) \| Respond to of 11568

There are only two ways to calculate the year to date change. One is to mark the cost of each position to the close on 12/31/00. The other is to adjust the beginning balance or "gains realized" by an amount equal to the gain or loss on open positions as of 12/31/00. In essence, it looks like this is what you did last year. Here is how we are doing so far in 2001. Z Portfolio: +32.8% DJIA -1.9% Nasdaq: +11.6% S&P 500: +1.7% Russell 2000: +1.4% Any way you look at it, we have a very good return this year, as this is how much the portfolio is actually up since 12/31/00. The gain or loss on open positions up to 12/31/00 was effectively realized in 2000 by marking the prices to market on the last day of the year. Here's how we did in 2000 Z portfolio -20.4% DJIA -7.3% Nasdaq -40.8% S&P 500 -11.6% Russell 2000: -8.2% It's never good to lose 20%, but considering how poorly the Nasdaq did, and how heavily weighted our portfolio is in the sectors of the Nasdaq that got hit the hardest, our return wasn't that bad. Here is a longer term perspective. Change since 1/1/00 Z Portfolio: +5.7% DJIA: -8.0% Nasdaq: -32.2% S&P 500: -8.6% Russell 2000: -2.9% Change since 1/1/99 Z Portfolio: +178.8% DJIA: +15.2% Nasdaq: +25.8% S&P 500: +9.3% Russell 2000: +16.2% Any way you cut it, we have outperformed the market averages over the last couple of years. I don't have the data from 1997 and 1998, but I recall that we beat the averages those years as well. Congratulations to all for a job well done. If people had real dollars invested in a fund that performed exactly like ours, they should be very pleased with their long term return, but obviously they would be unhappy if they looked at certain periods where we had big draw downs. I think the portfolio is meeting the objectives that we set out in the beginning. It is volatile, highly risky, and has a relatively high turnover, BUT the return makes the risk well worth taking.