Portfolio Update

This is the first time I have provided a snapshot of the allocation spreadsheet I use to give myself a picture of my portfolio and calculate my NetWorthIQ numbers. It includes percentage allocations, summary allocations, performance figures, and total portfolio, saving etc. in US and Australian Dollars. It is based on a whole series of underlying spreadsheets. Each month I create a new worksheet like this from the previous one. That way I can compare this month to previous months. I was inspired by the worksheets George Soros provided in "The Alchemy of Finance".

I'll mainly focus on the current allocation in these comments. The main window shows the allocation of assets to securities and funds irrespective of whether they are in a retirement or taxable" account (Australian retirement accounts are taxable, but at a concessionary rate). The overall strategy which I ahve discussed is to invest 100% of assets in medium to long-term invests and then use leverage to trade. The market risk of the medium to long-term investments is adjusted slowly - preferably not more than once a year.

Main categories:

Mutual funds:
CFS (Australia), TIAA, CREF mutual funds - 78% of total. These are currently in a conservative mix - the largest amount is in the CFS Conservative Fund which is 70% bonds and cash, 30% equity related. When I think the stock-markets have bottomed I will become much more aggressive here.

Closed end/listed hedge funds/fund managers:
Everest Brown Babcock (fund of funds), Platinum Capital (listed hedge), Loftus Capital, Clime, Berkshire Hathaway - 12% of total - in the long-run I want to have much more in these kind of investments with the plan to only sell if the managers performance declines. Listed property/infrastructure adds another 3% in Challenger Infrastructure and IYS. Berkshire is really an insurance conglomerate but I think of it like a hedge fund/fund manager.

Individual stock investments:
Telecom NZ, Mayne Pharma, Symbion, Ansell, Croesus, Powertel - 11%. This is the extent of my "traditional stock picking". As I've posted, I don't do a lot of it. Mainly these are health or telecom firms. Croesus is a rather unsuccessful gold miner.

Trading:
A mix of short stock positions - Starbucks, Google, Apple, QQQQ, options - TLT, HHH, QQQQ, and gold. Any of these can be traded at any time, often intraday. Overall I end up with 46% more assets than equity. Less than half of that additional money is borrowed cash (19%) the rest is in borrowed stocks (26%). Short-selling requires holding lots of cash on deposit. That's the reason for my big cash holdings: 38% of assets. Cash outside my trading account is only 2% of assets. I have been withdrawing some profits from my trading account to my HSBC Savings Account in anticipation of paying off my credit card balances in the next couple of months (mostly zero percent). I missed out on playing this bounce in the markets in the last 3 days - I think there is another downwave to come before a more significant rally occurs. I will let you know when I get short-term bullish. However, I am not so bearish - If the stockmarket falls 10% I only stand to gain 1.6% (beta leverage) and so far I have lost money this month (0.43%) though less than the benchmark index has (2.64%).