The Year that was and the Year that will be

It's been a while since we've last updated this blog so yeah, here's some updates on what's going on. Haha!

2013 was a volatile year for Philippines and the EM in general. The PCOMP started out 2013 quite strongly in the 1st 5 months of the year only to wipe out all the gains accumulated in just roughly a month time from mid-May to end of July. 

2013 was a roller coaster ride w/c ended up relatively flat at 1.33% gain, on the other hand, for 2014 the PCOMP is coming back with a 6.87% YTD gain. Let's see what happens moving forward.

*Click Image to Enlarge*

PCOMP, Daily, 2013 to Present

Apparently the performance of our stock portfolio for 2013 to present is somewhat crappy, we've only made 0.83% for the whole 2013 and is currently at -1.89% for the year 2014. This vs the PCOMP's 1.33% (2013) and 6.87% (YTD 2014) and S&P 500's 31.30% (2013) and -0.69% (2014).

The Filipino Investor Quantitative Model Portfolio

I have conducted a Multi-factor analysis on stocks listed in the Philippine Stock Exchange last Jan 23, 2013.

From the top 25 stocks that passed that analysis, I made a dummy or a "model" portfolio if you may to track it's performance. 

The model portfolio is dominated in PHP and assumes a PHP 10,000 exposure for every stock on purchase date. The purchase date is on Jan 24, 2013 w/c is one day after the analysis was done. The purchasing price is the closing price of the Jan 24, 2013. There are 25 stocks in this model portfolio hence the initial capital  is PHP 250,000. Brokerage cost and taxes are not accounted for this model.

Let's find out if this "Multi-factor" strategy can outperform the Philippine index (PCOMP:IND) in terms of return.

This is a buy and hold strategy w/c re-balances annually. I'm not sure yet how i'm going to account for the dividends or if this Bloomberg watch list can account that for me (though I think it cant). Anyways, I'll just figure that out later.

For tracking purposes let's name this model portfolio as "The Filipino Investor Quantitative Fund" or in short, "TFI Quant Fund".

TFI Quant Fund:

Capital: PHP 250,000

Analysis date: Jan 23, 2013

Purchase date: Jan 24, 2013

Number of stocks: 25

Exposure per stock: PHP 10,000

Benchmark: PCOMP:IND

TFI Quant Fund return since Jan 24: +8.04%

PCOMP return since Jan 24: +5.58%

TFI Quant Fund

DISCLAIMER: 

This is not an investment advice and the Author does not have any position on the stocks mentioned above as of the publishing date of this article - Feb 08, 2013. 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.

The Filipino Investor is B-b-b-b-b-back! :D

Due to an unfortunate malware attack in our previous server's database our very-own Philippine-based investment and trading blog - The Filipino Investor went down for a few months. Extensive efforts were done to recover our old ideas and articles, but we were unlucky.

Since investing and trading in the financial markets is really our passion and we believe in the mantra "Kung ayaw may dahilan, kung gusto palaging merong paraan" - here we are again.

We are not trying to revive what was lost but rather we are simply moving on and start anew. :)


On behalf of The Filipino Investor team,

Ladies... and gentlemen