Hello Pezz, Report – 2003 Summary:
<<Risk taking is something %^) >>
Yes, you are right, I was just being difficult.
Today is a beautiful day in Hong Kong, 73 degrees and sunny.
I spent the day drinking non-alcoholic drinks, staring out
the balcony door at the sailboats, reading various reports
on the subject of 2004, and doing a bit of thinking.
I also did a summary of my 2003 looting and pillaging, just so that I
know where the goodies came from and get a sense of what a
challenge 2004 may turn out to be.
Beginning of year position was so Message 18388681
2003 Year-end Summary:
Allocation % of G. Asset
Cash 34.6%
AUD 9.7%
CAD 18.0%
DKK 0.4%
Euro 3.8%
HKD 3.5%
JYen 0.5%
NOK 0.0%
RMB 0.0%
USD -1.4%
ZAR 0.0%
Gold/Platinum 10.2%
Bonds 12.5%
USD 11.8%
Non-USD 0.7%
Rental Real Estate 19.6%
Equity 23.1%
Total 100.0%
Equity Allocation
Allocation % of % of
BY MARKET G. Asset Equity
Australia 6.1% 26.3%
Canada 6.0% 25.9%
China/HK 1.7% 7.2%
Europe 1.2% 5.3%
Indonesia 0.1% 0.5%
India 0.0% 0.0%
Japan 0.0% 0.0%
Latin America 0.5% 2.0%
Pakistan 0.0% 0.0%
Russia 0.6% 2.5%
South Africa 1.2% 5.2%
United States 5.8% 25.1%
Zimbabwe 0.0% 0.0%
TOTAL 23.1% 100.0%
Equity Allocation
Allocation % of % of
BY SECTOR G. Asset Equity
Energy Royalty 6.7% 28.8%
Energy 3.3% 14.5%
Mining/Resource 2.9% 12.5%
Gold 2.2% 9.5%
Platinum Group 1.2% 5.1%
Transportation 1.0% 4.5%
Real Estate 0.4% 1.6%
Media 4.1% 17.7%
Pharmaceutical 0.3% 1.2%
Bio-technology 0.0% 0.0%
Technology/Telecom 0.1% 0.6%
Finance 0.4% 1.7%
Retail 0.0% 0.0%
Other 0.6% 2.4%
TOTAL 23.1% 100.0%
Include:
- Resources 70.3%
- Other 29.7%
Energy Trust as Allocation
Trust % of % of
ALLOCATION G. Asset Equity
Acclaim Energy 0.32% 1.40%
Advantage Energy 0.40% 1.72%
Baytex Energy 0.32% 1.39%
Canadian Oil Sands 0.72% 3.10%
Energy Split 0.49% 2.14%
Enerplus 0.32% 1.38%
Fording Cnd 0.22% 0.96%
GulfTerra Energy 0.22% 0.96%
Hugoton Royalty 0.40% 1.72%
Kinder Morgan 0.25% 1.10%
Petrofund 0.59% 2.57%
Pengrowth Energy 0.29% 1.24%
Primewest Energy 0.27% 1.15%
Prudhoe Bay 0.29% 1.23%
SanJuanTrust 0.39% 1.68%
Vermilion Energy 0.94% 4.05%
Viking Energy 0.23% 0.99%
TOTAL 6.7% 28.8%
2003 Gain as Gain as
Gain % of % of
Analysis G. Asset Adj. Asset
Gain % 22.10% 32.05%
Adj. Asset = Actively managed asset (excl. real estate and certain bonds)
2003 Gain as Allocation
Gain % of % of
Analysis G. Asset Net Gain
Gain 2003 22.10% 100.00%
Currency/Gold 13.90% 62.90%
Dividend 0.76% 3.45%
Interest 0.69% 3.12%
NEM premium 1.03% 4.67%
Equity gain 5.72% 25.86%
* G.Assets includes a USD-denominated loan at 3.0899% annual interest
Equity: Comprised of ...
Australia - AWB (AWB.AX - formerly Australian Wheat
Pool), Australian Worldwide Exploration (AWE.AX), BHP
Billiton (BHP.AX), Lumacom (LUM.AX), Record Investments
(RCD.AX), Rio Tinto (RIO.AX); Woodside Petroleum (WPL.AX);
Canada - Acclaim Energy, Advantage Energy Income,
AgnicoEagle Mines, Baytex Energy, Cameco, Canadian Oil
Sands, Energy Split, Enerplus, Fording Canadian Coal,
Petrofund, Pengrowth Energy, Primewest Energy,
Saskatchewan Wheat Pool, Vermilion Energy, Viking Energy
China/Hong Kong - China Shipping, China Life,
CNOOC, People's Food, Petro China, PICC Property &
Casualty, Sinopec, Tracker Fund (index fund), Yanzhou
Coal;
Europe - BG Group, British Petroleum, Corio,
Golar LNG;
Indonesia - Freeport McMoran (FCX), PT Indorama
Synthetics
Japan - sold off all positions on November 12th, 2003;
Latin America - Cresud (CRESY), IRSA (IRS), PBR, RIO;
Russia – Gazprom (GAZPq.L), Luk Oil (LUKOY), Yukos (YUKOY);
South Africa -
AngloAmerican Platinum, Impala Platinum and Sasol;
USA - AIG, ARLP, CAU, BPT, FRO, GLBCF, GTM, HGT, N,
KMP, MRK, NAT, NEM, PAL, PPH, PD, PFE, SJT, TK, VLCCF;
I have these not altogether internally consistent option positions:
Short NLY Jan Put 15 @ 0.60
Short NEM Jan Put 42.5 @ 0.70
Short FCX Feb Put 25 @ 1.50
Short NEM Feb Put 42.5 @ 1.05
Short HMY Feb Put 12.5 @ 1.60
Short AEM Feb Put 12.5 @ 0.80
Short AEM Feb covered Call 15 @ 1.30
Short NEM Mar covered Call 50 @ 2.90
Short NEM Mar covered Call 45 @ 2.62
Short NEM Mar covered Call 40 @ 3.80
Short NEM Mar covered Call 40 @ 3.20
Short BTU Mar Put 40 @ 2.60
Long PPH 2004 May Call 80 @ 2.40
Long JPM 2005 Jan Put 25 @ 3.80
Long LEN 2005 Jan Put 30 @ 3.36
Long CFC 2005 Jan Put 40 @ 5.18
Long PHM 2005 Jan Put 25 @ 2.60
In words:
(a) NAV gain is 22.1%, and if excluding real estate and
inactive bond portfolio (neither of which have been re-
valued, and is accounted for at lower of market or
original cost), then 32%;
(b) Equity allocation was never higher than the current
23.1% of overall gross asset;
(c) USD currency slide against AUD, CAD, Euro, Yen, and
physical gold/platinum accounted for 63% of total NAV
gains in 2003; had the USD not tanked the way it did, my
gains denominated in USD would then have been so very much
less;
(d) Equity gains (realized and unrealized) accounted for
26% of the total NAV gains; and
(e) NEM put/call premium income (see zig/zag achamchen.com ) accounted for 4.67%
of the total NAV gains (more than total dividend, at 3.45%
of total NAV gain, or interest income, at 3.12% of total
NAV gain), and was about 58% of the value of the
underlying NEM shares held on average in portfolio, which
represents a substantial income augmentation (had I simply
held my NEM shares, I would have scored a 53% instead of
58%, and NEM could have gone down and can still drop in
the next few days).
Chugs, Jay |
