inMessment Game – First Quarter Results 2011

The first quarter of 2011 has ended. This is the perfect time to review my inMessment Game results and see how I have done. This will be the very first quarterly review.

I started the inMessment Game on Investopedia in December of 2010. The game now has a grand total of 4 players including me. Now is a great time to join. Its like getting in on the ground floor.

Here is what you will see in this post:


inMessment Game Numbers as of March 31, 2011

The inMessment Game starts with $25,000 in virtual game cash. From there I invested in a portfolio of ETFs and Stocks. Here are my current numbers. These are cumulative from the start of the game.

  • Account Value: $26,706.40 – Up 1,706.40 from the initial $25K
  • Annual Return: 23.77% (current rate of returns extrapolated for an entire year)
  • Number of Securities In Portfolio: 12
  • Available Cash: $2,970.73


Comparison to Benchmark – The S&P 500 Index

The benchmark I have chosen to compare my results to is the S&P 500 Index. This is a broad index of 500 of the top US companies. Many investors and firms use this index as a general benchmark.

To make my comparison easier I have maintained my inMessment Game portfolio in a Google Finance portfolio as well. This is a little extra effort but I can get the chart shown below from Google and simply check a check box to compare it to the S&P 500 Index.

The blue line is my inMessment Game portfolio. The Red line is the S&P 500 Index. You can see that in January and February I was slightly trailing the index but in March I caught up. At this point I show to be slightly ahead, +6.12%. to +5.41%, so I guess I can claim success. (dancing around the room, beating the air with my fists, singing Eye of the Tiger!) In reality the long term will be the true measure of success.


The Good

My Core equity investments have done well. These are Large, Mid and Small cap US Index funds. It is interesting to see the performance difference between these three funds. Watching these Large, Mid and Small cap funds helps us to understand how different events affect these segments of the market.

Name Symbol Last price Shares Mkt value Gain %
iShares Russell Midcap Index Fund (ETF) IWR $109.70 25 $2,724.75 7.40%
iShares S&P SmallCap 600 Index (ETF) IJR $73.78 37 $2,721.72 7.17%
SPDR S&P 500 ETF SPY $133.15 20 $2,651.80 5.61%


My Sub-Core investments have done very well. These are Sector specific investments and I allocate less to these than Core investments. SLV is a precious metals ETF that tracks the price of Silver. PLD is a global REIT and gives me exposure to Real Estate.

Name Symbol Last price Shares Mkt value Gain %
iShares Silver Trust (ETF) SLV $36.86 36 $1,323.72 31.24%
ProLogis PLD $16.03 100 $1,598.00 11.59%


Some of my Opportunity investments have done very well.

I bought Education Management on Jan 11 for a net of $1,011.51 and sold on Mar 1 for a net of $1,375.29, a nearly 36% return.

BlackRock, a financial firm, got a nice bounce when it was added to the S&P 500 Index.

Range Resources, a natural gas company and Medtronic, a medical equipment company have done nicely as well.

Name Symbol Last price Shares Mkt value Gain %
Education Management Corp EDMC $19.24 0 $0.00 35.96%
Range Resources Corp. RRC $58.05 25 $1,461.50 29.62%
BlackRock, Inc. BLK $202.43 10 $2,010.10 11.73%
Medtronic, Inc. MDT $39.50 30 $1,180.50 6.92%


The Bad

From my Core investments, my bond fund has not done so well. From the headlines I have been seeing late last year and so far this year, it seems that bonds are not expected to do well now. I added bonds to my portfolio because all the asset allocation guides normally have bonds as a portion of the portfolio.

Since I am 39 right now and I plan to look at this long term I have been considering finding another place for this money. I may redistribute it in the other Core funds or, if I run low on cash and a good opportunity comes by, I may exit this bond fund for that.

Name Symbol Last price Shares Mkt value Gain %
Vanguard Intermediate-Term Bond ETF BIV $81.87 30 $2,459.40 -1.18%


From my Sub-Core investments, my International funds have under performed the S&P 500 Index. They are positive and I expect them to do better over the long term.

Name Symbol Last price Shares Mkt value Gain %
iShares MSCI Emerging Markets Indx (ETF) EEM $49.45 54 $2,628.18 3.43%
iShares MSCI EAFE Small Cap Index Fund SCZ $43.43 25 $1,083.50 3.46%


The Ugly

Two of my Opportunity investments have been down write ugly in Q1.

Nike I bought on December 27 when it was at $85.50. On March 18 the price dropped over 10% to the $77 range. Nike reported that material were becoming more expensive and cutting into their profit (read inflation!!!). Despite this drop, I feel this is a long-term, quality stock. On March 23 I doubled my position at a price of $76.96.

Bank of Ireland was the most “speculative” of all my trades. I had seen it bounce up and down and I was hoping to catch one of those bounces. I bought in on December 17 at a price of $2.58. It seemed to slowly continue down from there. In early March, and after talking with my dad about this game, I decided it was time to cut loses. I sold on March 21 at $1.97. A loss of -25.33%.

Name Symbol Last price Shares Mkt value Gain %
NIKE, Inc. NKE $76.53 25 $1,892.50 -7.75%
Bank of Ireland (ADR) IRE $1.97 0 $0.00 -25.33%


Major Market Events

There were two major world events that negatively affected the markets in the first quarter. The Libyan Revolution started February 17th. And the Japan earthquake and tsunami starting on March 11th.

You can easily see the impact of these two events in the benchmark graph. I have circled the timeframe for each event.


Full inMessment Game Portfolio

Here is the full portfolio as of March 31, 2011. I have categorized the investments in the following way:
Core: Long-term stable investments that will not change often.
Sub-Core: Still long-term but may trade more often.
Opportunity: Long or short-term trading opportunities.

inMessment Game Portfolio As of March 31, 2011

Name Symbol Last price Shares Mkt value Gain % Purpose
SPDR S&P 500 ETF SPY $133.15 20 $2,651.80 5.61% Core
iShares Russell Midcap Index Fund (ETF) IWR $109.70 25 $2,724.75 7.40% Core
iShares S&P SmallCap 600 Index (ETF) IJR $73.78 37 $2,721.72 7.17% Core
Vanguard Intermediate-Term Bond ETF BIV $81.87 30 $2,459.40 -1.18% Core
iShares MSCI Emerging Markets Indx (ETF) EEM $49.45 54 $2,628.18 3.43% Sub-Core
iShares MSCI EAFE Small Cap Index Fund SCZ $43.43 25 $1,083.50 3.46% Sub-Core
iShares Silver Trust (ETF) SLV $36.86 36 $1,323.72 31.24% Sub-Core
ProLogis PLD $16.03 100 $1,598.00 11.59% Sub-Core
BlackRock, Inc. BLK $202.43 10 $2,010.10 11.73% Opportunity
NIKE, Inc. NKE $76.53 25 $1,892.50 -7.75% Opportunity
Range Resources Corp. RRC $58.05 25 $1,461.50 29.62% Opportunity
Medtronic, Inc. MDT $39.50 30 $1,180.50 6.92% Opportunity


inMessment Game Trade History

Below is the trade history for my inMessment Game. Since this is the first results post, I am including the history from the start of the game.

Date Type Symbol Quantity Price Total Value
3/23/2011 Buy NKE 13 $76.96 $1,010.41
3/21/2011 Sell IRE 400 $1.97 $778.01
3/1/2011 Sell EDMC 72 $19.24 $1,375.29
1/14/2011 Buy SLV 36 $27.74 $1,008.70
1/11/2011 Buy MDT 30 $36.47 $1,104.05
1/11/2011 Buy EDMC 72 $13.91 $1,011.51
1/6/2011 Buy RRC 25 $44.70 $1,127.49
12/27/2010 Buy NKE 12 $85.50 $1,040.99
12/21/2010 Buy PLD 100 $14.22 $1,431.99
12/17/2010 Buy IRE 400 $2.58 $1,041.99
12/16/2010 Buy BLK 10 $178.91 $1,799.09
12/16/2010 Buy SCZ 25 $41.49 $1,047.24
12/13/2010 Buy EEM 54 $46.87 $2,540.97
12/13/2010 Buy BIV 30 $82.63 $2,488.89
12/13/2010 Buy IJR 37 $68.37 $2,539.68
12/13/2010 Buy IWR 25 $101.08 $2,536.99
12/13/2010 Buy SPY 20 $125.05 $2,510.99


Join the inMessment Game

Now that you have read through my results why don’t you join the game yourself? It is completly free and the best way I have found to learn about investing.
Click Here to Join the inMessment Game!


DISCLAIMER
This and other articles on this blog are for entertainment purposes. I am doing the best I can but I am still very much in a learning process. These posts are an effort to share this learning process only and should not be considered financial advice.

4 comments to inMessment Game – First Quarter Results 2011

Follow inMessment
Subscribe to get posts by Email:

We keep your address private: Privacy Policy

Search The inMessment Site