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Monday, December 12, 2016

Year 2016 Performance and Portfolio Rebalancing

For the long-time followers of this blog, you would probably know that we are also managing our own personal investment portfolio in the Philippine stock market. We refer to that portfolio as "Filipino Investor Equity Fund" or simply FIEF. So here's an update on our recent trades and our performance since we started investing in the PSE since March 2010.


We've managed to perform relatively well for the year 2016 despite the index being down for the whole year, we're up +19.36% vs PCOMP's -2.46% as of 30-Nov-16. The performance was mainly driven by our exposure on RSA stocks, i.e. SMC, PCOR, PF in addition to some notable gains from STI and FOOD. We don't really memorize every single trade that made and lost money because we try to look and manage the portfolio as a whole rather than on an individual stock basis but those are the primary drivers on top of our head.

Since inception-wise we are also performing relatively well vs the PCOMP and S&P 500. FIEF's CAGR is +19.31% in the last 6.69 Years vs PCOMP's +11.99% and S&P 500's +9.94% in the same time period. 

We intend to continue our value investment philosophy moving forward.

Performance Summary:

*In computing the Portfolio performance, everytime we add additional capital to the portfolio the accounting treatment is as if the cash was added at the start of the fiscal year. We believe there's a more accurate way of computing the performance than this method but we're sticking to it because it is simple, it's conservative and it makes intuitive sense.

Equity Curves - FIEF vs PCOMP vs S&P500, Since inception assuming 100k initial investment

*Data points of the chart above are Yearly, hence daily and monthly draw-downs are not visible.

PORTFOLIO REBALANCING - we basically had a major re-balancing in our portfolio and below were the trades taken.

FIEF Before Rebalancing - Oct 2016

CountTickerCompany NameAllocation
1ACRAlsons Consolidated Resources Inc1.77%
2ALCOArthaLand Corp2.99%
3ARAbra Mining & Industrial Corp12.42%
4CHICebu Holdings Inc7.59%
5COLCOL Financial Group Inc8.15%
6CPGCentury Properties Group Inc3.35%
7EVEREver-Gotesco Resources and Holdings Inc2.78%
8FOODAlliance Select Foods International Inc3.54%
9GERIGlobal-Estate Resorts Inc2.21%
10MACMacroAsia Corp4.84%
11OPMOriental Petroleum & Minerals Corp5.60%
12OREOriental Peninsula Resources Group Inc3.57%
13PCORPetron Corp4.21%
14PFSan Miguel Pure Foods Co Inc5.13%
15PMPCPanasonic Manufacturing Philippines Corp3.50%
16PXPhilex Mining Corp6.63%
17PXPPXP Energy Corp0.49%
18SGISolid Group Inc4.54%
19SHNGShang Properties Inc7.52%
20SMCSan Miguel Corp4.90%
21STISTI Education Systems Holdings Inc3.99%

Sell Trades - done between Nov to Dec 2016

CountTickerCompany NameAction
1ACRAlsons Consolidated Resources IncSold
2CHICebu Holdings IncSold
3COLCOL Financial Group IncSold
4FOODAlliance Select Foods International IncSold
5GERIGlobal-Estate Resorts IncSold
6MACMacroAsia CorpSold
7OREOriental Peninsula Resources Group IncSold
8PXPhilex Mining CorpSold
9PXPPXP Energy CorpSold
10PFSan Miguel Pure Foods Co IncLighten Up
11SMCSan Miguel CorpLighten Up
12STISTI Education Systems Holdings IncSold

Buy Trades - done between Nov to Dec 2016

CountTickerCompany NameAction
1TFHITop Frontier Investment Holdings IncBuy
2FDCFilinvest Development CorpBuy
3CDCCityland Development CorpBuy
4IMIIntegrated Micro-Electronics IncBuy
5VLLVista Land & Lifescapes IncBuy
6PHNPhinma CorpBuy
7HIHouse of Investments IncBuy
8SPCSPC Power CorpBuy
9ANSA Soriano CorpBuy
10ROCKRockwell Land CorpBuy
11LPZLopez Holdings CorpBuy
12PIPPepsi-Cola Products Philippines IncBuy
13FPHFirst Philippine Holdings CorpBuy
14PSPCPhoenix Semiconductor Philippines CorpBuy
15EEIEEI CorpBuy
16GMA7GMA Network IncBuy
17WPIWaterfront Philippines IncBuy
18SOCSOCResources IncBuy

FIEF After Rebalancing - as of Dec 12, 2016

CountTickerCompany NameAllocationP/E RatioP/B Ratio
1OPMOriental Petroleum & Minerals Corp5.89%9.260.56
2SGISolid Group Inc4.35%3.640.22
3SHNGShang Properties Inc7.07%5.350.56
4SOCSOCResources Inc4.42%N/A0.5
5ALCOArthaLand Corp4.03%2.530.83
6ANSA Soriano Corp2.63%5.040.95
7ARAbra Mining & Industrial Corp11.69%N/A0.39
8CDCCityland Development Corp2.98%10.250.8
9CPGCentury Properties Group Inc3.13%5.630.45
10EEIEEI Corp2.30%N/A1.03
11EVEREver-Gotesco Resources and Holdings Inc2.61%3.020.25
12FDCFilinvest Development Corp2.52%14.810.97
13FPHFirst Philippine Holdings Corp2.50%3.550.48
14GMA7GMA Network Inc2.42%8.762.38
15HIHouse of Investments Inc2.50%4.850.39
16IMIIntegrated Micro-Electronics Inc2.53%4.520.92
17LPZLopez Holdings Corp2.68%4.810.68
18PCORPetron Corp4.05%19.661.13
19PFSan Miguel Pure Foods Co Inc2.86%8.690.99
20PHNPhinma Corp2.50%5.620.41
21PIPPepsi-Cola Products Philippines Inc3.19%14.221.33
22PMPCPanasonic Manufacturing Philippines Corp3.82%5.890.53
23PSPCPhoenix Semiconductor Philippines Corp2.41%4.530.61
24ROCKRockwell Land Corp2.28%5.330.64
25SMCSan Miguel Corp2.80%16.780.83
26SPCSPC Power Corp2.17%3.660.77
27TFHITop Frontier Investment Holdings Inc2.54%89.780.86
28VLLVista Land & Lifescapes Inc2.53%7.470.92
29WPIWaterfront Philippines Inc2.47%3.420.19
TOTAL / AVERAGE:FIEF Portfolio100.00%10.430.74
FIEF P/E ex TFHI7.25

CountTickerCompany NameP/E RatioP/B Ratio
1PCOMPPhilippine Composite Index18.62.23

Note: We included a P/E and P/B information to give FI readers a sense on the valuations of FIEF portfolio vs the benchmark for comparison purposes.

We've also included an FIEF P/E ex TFHI since TFHI seems to be an outlier in the distribution of PE ratios for the portfolio. Based on the numbers, the portfolio is undervalued relative to the index. 

Let's see how FIEF performs moving forward.

This is not an investment advice and the author shall not be responsible or liable for any trading or investment decisions made based on this information. The author hereby expressly disclaims any responsibility for any error or inaccuracy in the information.

1 comment:

  1. Hello. Nice write up. May I ask why Abra vs Philex Mining?

    Also, Abra is over 10% of your total portfolio.

    Could be a good bet since commodities should have a good run moving forward.