For the latest week, the Long-Term Value Portfolio appreciated by 20 basis points versus the 12 basis point gain on the S&P 500. This left the portfolio up 5.8% for the year or a detriment of 80 basis points versus the market, but having gained 13.2% since inception, the later resulting in a 1.6% positive relative price appreciation. This is reflected in the chart below showing the portfolio (blue line) versus the S&P 500 (green) and the NASDAQ (brown).
On a sector basis, the performance of the consumer staples sector was the largest contributor to the weekly outperformance, with the portfolio names outperforming the market sector by 5.7 percentage points. This was mainly due to the 10% gain in Diamond Foods and to a lesser extant gains in Nash Finch. The worst performing group relative to the market was healthcare, losing 1.3%, mainly due to losses at Agilent. Speaking of Agilent, I will be selling this name out the portfolio this week, as the stock sold off, on volume, from recent highs. As I have discussed numerous times, volume coming off the high is typically an ominous sign and can suggest future underperformance. I will take what gains I have in the name and move on. While also on the subject of portfolio repositioning, Cleveland Cliffs fell off one last week and has violated a sell rule. I will also sell out of this name, take my licks, and move on to another name. Finally, KKD is now more than 4% of the portfolio, having gained over 100% since the initial purchase. I anticipate reducing the exposure to take down portfolio risk.
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