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.

PERFORMANCE:

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

Count	Ticker	Company Name	Allocation
1	ACR	Alsons Consolidated Resources Inc	1.77%
2	ALCO	ArthaLand Corp	2.99%
3	AR	Abra Mining & Industrial Corp	12.42%
4	CHI	Cebu Holdings Inc	7.59%
5	COL	COL Financial Group Inc	8.15%
6	CPG	Century Properties Group Inc	3.35%
7	EVER	Ever-Gotesco Resources and Holdings Inc	2.78%
8	FOOD	Alliance Select Foods International Inc	3.54%
9	GERI	Global-Estate Resorts Inc	2.21%
10	MAC	MacroAsia Corp	4.84%
11	OPM	Oriental Petroleum & Minerals Corp	5.60%
12	ORE	Oriental Peninsula Resources Group Inc	3.57%
13	PCOR	Petron Corp	4.21%
14	PF	San Miguel Pure Foods Co Inc	5.13%
15	PMPC	Panasonic Manufacturing Philippines Corp	3.50%
16	PX	Philex Mining Corp	6.63%
17	PXP	PXP Energy Corp	0.49%
18	SGI	Solid Group Inc	4.54%
19	SHNG	Shang Properties Inc	7.52%
20	SMC	San Miguel Corp	4.90%
21	STI	STI Education Systems Holdings Inc	3.99%
22	CASH	Cash	0.29%
	TOTAL:		100.00%

Sell Trades - done between Nov to Dec 2016

Count	Ticker	Company Name	Action
1	ACR	Alsons Consolidated Resources Inc	Sold
2	CHI	Cebu Holdings Inc	Sold
3	COL	COL Financial Group Inc	Sold
4	FOOD	Alliance Select Foods International Inc	Sold
5	GERI	Global-Estate Resorts Inc	Sold
6	MAC	MacroAsia Corp	Sold
7	ORE	Oriental Peninsula Resources Group Inc	Sold
8	PX	Philex Mining Corp	Sold
9	PXP	PXP Energy Corp	Sold
10	PF	San Miguel Pure Foods Co Inc	Lighten Up
11	SMC	San Miguel Corp	Lighten Up
12	STI	STI Education Systems Holdings Inc	Sold

Buy Trades - done between Nov to Dec 2016

Count	Ticker	Company Name	Action
1	TFHI	Top Frontier Investment Holdings Inc	Buy
2	FDC	Filinvest Development Corp	Buy
3	CDC	Cityland Development Corp	Buy
4	IMI	Integrated Micro-Electronics Inc	Buy
5	VLL	Vista Land & Lifescapes Inc	Buy
6	PHN	Phinma Corp	Buy
7	HI	House of Investments Inc	Buy
8	SPC	SPC Power Corp	Buy
9	ANS	A Soriano Corp	Buy
10	ROCK	Rockwell Land Corp	Buy
11	LPZ	Lopez Holdings Corp	Buy
12	PIP	Pepsi-Cola Products Philippines Inc	Buy
13	FPH	First Philippine Holdings Corp	Buy
14	PSPC	Phoenix Semiconductor Philippines Corp	Buy
15	EEI	EEI Corp	Buy
16	GMA7	GMA Network Inc	Buy
17	WPI	Waterfront Philippines Inc	Buy
18	SOC	SOCResources Inc	Buy

FIEF After Rebalancing - as of Dec 12, 2016

Count	Ticker	Company Name	Allocation	P/E Ratio	P/B Ratio
1	OPM	Oriental Petroleum & Minerals Corp	5.89%	9.26	0.56
2	SGI	Solid Group Inc	4.35%	3.64	0.22
3	SHNG	Shang Properties Inc	7.07%	5.35	0.56
4	SOC	SOCResources Inc	4.42%	N/A	0.5
5	ALCO	ArthaLand Corp	4.03%	2.53	0.83
6	ANS	A Soriano Corp	2.63%	5.04	0.95
7	AR	Abra Mining & Industrial Corp	11.69%	N/A	0.39
8	CDC	Cityland Development Corp	2.98%	10.25	0.8
9	CPG	Century Properties Group Inc	3.13%	5.63	0.45
10	EEI	EEI Corp	2.30%	N/A	1.03
11	EVER	Ever-Gotesco Resources and Holdings Inc	2.61%	3.02	0.25
12	FDC	Filinvest Development Corp	2.52%	14.81	0.97
13	FPH	First Philippine Holdings Corp	2.50%	3.55	0.48
14	GMA7	GMA Network Inc	2.42%	8.76	2.38
15	HI	House of Investments Inc	2.50%	4.85	0.39
16	IMI	Integrated Micro-Electronics Inc	2.53%	4.52	0.92
17	LPZ	Lopez Holdings Corp	2.68%	4.81	0.68
18	PCOR	Petron Corp	4.05%	19.66	1.13
19	PF	San Miguel Pure Foods Co Inc	2.86%	8.69	0.99
20	PHN	Phinma Corp	2.50%	5.62	0.41
21	PIP	Pepsi-Cola Products Philippines Inc	3.19%	14.22	1.33
22	PMPC	Panasonic Manufacturing Philippines Corp	3.82%	5.89	0.53
23	PSPC	Phoenix Semiconductor Philippines Corp	2.41%	4.53	0.61
24	ROCK	Rockwell Land Corp	2.28%	5.33	0.64
25	SMC	San Miguel Corp	2.80%	16.78	0.83
26	SPC	SPC Power Corp	2.17%	3.66	0.77
27	TFHI	Top Frontier Investment Holdings Inc	2.54%	89.78	0.86
28	VLL	Vista Land & Lifescapes Inc	2.53%	7.47	0.92
29	WPI	Waterfront Philippines Inc	2.47%	3.42	0.19
30	CASH	Cash	0.13%	N/A	N/A
TOTAL / AVERAGE:		FIEF Portfolio	100.00%	10.43	0.74
			FIEF P/E ex TFHI	7.25

Benchmark
Count	Ticker	Company Name	P/E Ratio	P/B Ratio
1	PCOMP	Philippine Composite Index	18.6	2.23

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.

DISCLAIMER:

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.