inMessment Game – Fourth Quarter & Full Year Results 2011

The 2011 year has come to an end. Time to review my inMessment Game results and see how I have done. I know this is a little late. We have been busy with our third adoption this month.

To see earlier results from 2011, click the following links:

First Quarter Results 2011
Second Quarter Results 2011
Third Quarter Results 2011

I started the inMessment Game on Investopedia in December of 2010. The game now has a grand total of 10 players including me. As we start the second year, NOW is a great time to join the game!

Here is what you will see in this post:


inMessment Numbers as of December 30, 2011

The fourth quarter of 2011 was a decent quarter. We had a little comeback from the third quarter drop. We ended the year down more than a percent.

  • Q4 Starting Account Value: $22,482.94
  • Q4 Ending Account Value: $24,579.13 (Up $2,096.19 (9.3%) from Q3 2011)
  • Annual Return: -1.6% (APY)
  • Number of Securities In Portfolio: 10
  • Trades this Quarter: 6
  • Available Cash: $5,232.14


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.

The Blue line is my inMessment Game portfolio. The Red line is the S&P 500 Index.

Here is the Year-To-Date chart. YTD, the S&P and my inMessment Game portfolio are fairly close together. From time to time the inMessment Game portfolio is doing slightly better than the S&P Index. At the end of Q4 the S&P did slightly better than my portfolio.

The Good

Seven of my holdings did as well or better than the S&P 500 in Q4. These I consider good for the quarter.

Name Symbol Q4 Gain %
BlackRock, Inc. BLK 18.9%
Prologis Inc PLD 17.9%
iShares S&P SmallCap 600 Index (ETF) IJR 16.7%
Medtronic, Inc. MDT 15.1%
NIKE, Inc. NKE 12.7%
Rydex S&P Equal Weight ETF RSP 11.8%
iShares Russell Midcap Index Fund (ETF) IWR 11.5%



The Bad

My bad list is not all bad this quarter. I list four holdings and they all made gains in Q4. I am listing them as bad because they lagged behind the S&P 500 so they did not keep up with my benchmark.

Name Symbol Q4 Gain %
iShares MSCI Emerging Markets Indx (ETF) EEM 8.2%
Rydex S&P MidCap 400 Pure Growth ETF RFG 7.2%
Market Vectors-Coal ETF KOL 6.2%
VMware, Inc. VMW 3.5%



The Ugly

I have two holdings in the Ugly list. These both lost money in Q4. SLV really tanked as silver and gold prices continue to drop. SCZ is being hit hard the debt problems in Europe.

Name Symbol Q4 Gain %
iShares MSCI EAFE Small Cap Index Fund SCZ -0.5%
iShares Silver Trust (ETF) SLV -6.9%



Changes To The Portfolio

In Q4 I have made two major changes to my portfolio.

First, I replaced my SPDR S&P 500 ETF (SPY) holding with Rydex S&P Equal Weight ETF (RSP). I did this with the idea that I want to beat the S&P index as my benchmark. SPY basically performs in line with the benchmark.

RSP weights the S&P 500 securities equally rather than by market cap. This gives more weight to the smaller companies in the index so RSP is slightly more volatile and may provide better returns over time.

The second major change is that I have started placing stop losses on the non-core holdings. This is basically due to the huge (15%) losses in Q3. Stop loss settings may have saved some of the gains from Q1 and Q2.

On December 28 three of my holdings hit their stop loss points and were sold. Since these were sold I now have a little over 20% of my portfolio in cash. I plan to reinvest this when I see a good opportunity.

Below are the three holdings that stopped out with their net gain/loss from the time I purchased each.

Name Symbol Gain/Loss %
Market Vectors-Coal ETF KOL -25.1%
iShares Silver Trust (ETF) SLV -6.1%
VMware, Inc. VMW -1.7%




Full inMessment Game Portfolio

Here is the full portfolio. Since I am late getting this out I am including the details as of January 27, 2012.
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 January 27, 2012

Name Symbol Last price Shares Mkt value Gain % Purpose
iShares Russell Midcap... IWR $105.07 25 $2,626.75 3.54% Core
iShares S&P SmallCap... IJR $73.28 37 $2,711.36 6.76% Core
Rydex S&P MidCap 400... RFG $84.95 30 $2,548.50 -3.38% Core
iShares MSCI Emerging... EEM $42.37 54 $2,287.98 -9.96% Sub-Core
iShares MSCI EAFE Small... SCZ $37.86 25 $946.50 -9.62% Opportunity
BlackRock, Inc. BLK $187.49 10 $1,874.90 4.21% Opportunity
Prologis Inc PLD $32.52 44 $1,430.88 1.04% Sub-Core
Medtronic, Inc. MDT $39.28 30 $1,178.40 6.73% Opportunity
VMware, Inc. VMW $92.27 50 $4,613.50 0.88% Opportunity
Rydex S&P Equal Weight... RSP $49.20 54 $2,656.80 5.57% Core
Cash $0.00 $3,232.69 0.00% Core
$0.00 $0.00 0.00%


inMessment Game Trade History for Q4 2011

Below is the trade history for my inMessment Game in Q4 2011. I also include the history through January 27, 2012 as I am late getting this post out.

Date Trade Type Symbol Quantity Price Value
1/27/2012 Sell at Market NKE 25 $101.79 $2,534.76
1/24/2012 Buy at Market Open VMW 50 $90.32 $4,525.99
12/28/2011 Sell at Trailing Stop VMW 22 $83.64 $1,825.09
12/28/2011 Sell at Trailing Stop KOL 40 $31.84 $1,258.61
12/28/2011 Sell at Trailing Stop SLV 75 $27.23 $2,027.11
12/19/2011 Buy at Limit KOL 20 $31.83 $651.59
11/9/2011 Buy at Market RSP 54 $46.42 $2,516.67
11/9/2011 Sell at Market SPY 20 $124.74 $2,484.81


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.


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