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2016 June Update


There was hedging activity as well as investment activity this month. Price histories, adjusted for splits and dividends, were downloaded from Yahoo.


Comprehensive Strategy investments

Selection list

The selection list was generated before the June 24 market opening.

                                    MERIT    PRICE   GROUP AND END MARKET  
MCD    McDonald's Corp               685    121.21  Restaurants     US/intl
VAL    Valspar Corp                  531    108.17  Chemicals          intl
CCI    Crown Castle                  498     96.08  Util, Telecom    US/Aus
ARCC   Ares Capital Corp             480     14.44  Investments          US
SPG    Simon Property                474    209.09  Real Estate        intl
MO     Altria Group                  469     66.31  Tobacco Prods   US/intl
HD     Home Depot                    452    128.29  Home Furnish        NAm
RAI    Reynolds American             449     50.84  Tobacco Prods        US
EL     Estee Lauder                  423     94.95  Personal Prods     intl
LMT    Lockheed Martin               418    240.00  Aerosp & Def    US/intl
AZO    AutoZone Inc                  400    762.77  Auto Parts       US/Mex
UNH    UnitedHealth Group            398    139.19  HC Plans             US
PM     Philip Morris                 394    101.90  Tobacco Prods      intl
TJX    TJX Companies                 390     76.88  Retail,Variety  US/intl
STZ    Constellation Brands          373    155.99  Beverage, Hard     intl
KMB    Kimberly-Clark Corp           363    133.96  Personal Prods     intl
AMT    American Tower                345    111.47  Real Estate        intl
COST   Costco Wholesale Corp         345    157.03  Retail,Variety  US/intl
hrL    Hormel Foods                  344 X   34.59  Meat Prods         intl
CMCSA  Comcast Corp                  343     62.95  Entertainment      intl

Portfolio

Investment exposure was $894,859, including $50,000 for the slated investment, and hedge exposure was $888,485. Closing a hedge would not improve balance.

I bought more MCD because all stocks were disqualified on the first pass. MCD, CCI, ARCC, HD, RAI, EL, LMT, UNH, TJX, STZ, and CMCSA were already investments; VAL was being acquired; SPG and AMT were in the Real Estate group; MO, PM, KMB, and COST were in the same group and end market as existing investments; AZO exceeded the price limit; and hrL was more than halfway towards a trend reversal:

                   GROUP AND END MARKET           START        END OF MONTH
500 CCI           Util, Telecom    US/Aus   12/15/14  37,778  06/30  50,715
4800 GPAGF        Packaged Goods  US/intl   09/26/14  49,921  06/30  68,634
60 ARCC18C15      Investments          US   03/28/16   4,315  06/30   2,100
60 ARCC18C17      Investments          US   05/25/16   1,495  06/30   1,200
20 CCE17C50       Beverage, Soft       EU   04/24/15   5,824  06/30   4,600
20 CMCSA18C55     Entertainment      intl   01/25/16  14,564  06/30  25,500
14 EL17C85        Personal Prods     intl   10/23/15  11,079  06/30  13,020
10 HD18C130       Home Furnish        NAm   02/25/16  13,246  06/30  11,150
4 LMT18C220       Aerosp & Def    US/intl   12/15/15   8,567  06/30  12,800
3 MCD17C90        Restaurants     US/intl   12/15/14   2,320  06/30   8,790
10 MCD18C125      Restaurants     US/intl   06/24/16   7,576  06/30   7,100
10 NI117C45       Util, Energy         US   01/27/15   3,096  06/30   5,900
28 RAI17C38.75    Tobacco Prods        US   02/25/15   7,075  06/30  39,480
14 STZ17C125      Beverage, Hard     intl   08/25/15  18,611  06/30  57,540
14 TJX17C70       Retail,Variety  US/intl   03/25/15  11,457  06/30  13,314
10 TRV18C115      Insurance       US/intl   11/25/15  10,812  06/30   9,700
6 UNh18C135       HC Plans             US   04/25/16   8,845  06/30  10,830

Capital gains, investments

Thousands of US$
  JUL   AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN
                     50     4    -2    -7    13    24   -14     -5    21

Capital gains, stocks

Thousands of US$
  JUL   AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN
   -4    -8   -13                                                       

Capital gains, call options

Thousands of US$
  JUL   AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN
   12    -6    -2                                                       

Comprehensive Strategy hedges

Selection list

The selection list was generated before the June 6 market opening.

                                    MERIT    PRICE   GROUP AND END MARKET  
TOT    Total SA                      547     47.52  Oil & Gas          intl
TDC    Teradata Corp                 226     28.31  Electron Eqpt   US/intl
DB     Deutsche Bank                 174     17.06  Banks              intl
DANG   E-Commerce China Dangdang     172      6.29  Retail, Special     Chn
AXP    American Express              171     65.49  Credit Servs       intl
RL     Ralph Lauren                  151     95.81  Apparel            intl
SLB    Schlumberger Ltd              149     75.63  Oil & Gas          intl
ENDP   Endo Intl                     148     17.59  Drugs              intl
WFM    Whole Foods Market            145     34.07  Food, Diverse   US/intl
QCOM   QUALCOMM Inc                  142     54.94  Electron Eqpt      intl
AMBA   Ambarella Inc                 142     46.47  Semiconductors     intl
M      Macy's, Inc                   141     34.33  Retail,Variety       US
RH     Restoration Hardware          141     34.03  Home Furnish     US/Can
KSS    Kohl's Corp                   139     38.05  Retail,Variety       US
NTAP   NetApp Inc                    137     24.94  Electron Eqpt      intl
BEAV   B/E Aerospace                 137     47.62  Aerosp & Def    US/intl
POT    Potash Corp                   134     16.78  Agriculture        intl
MS     Morgan Stanley                132     26.54  Investments        intl
BBBY   Bed Bath & Beyond             132     44.45  Home Furnish     US/Can
CCJ    Cameco Corp                   132     11.71  Basic Matls        intl

Portfolio

The merit for TOT is erroneous. Yahoo adjusted for a non-existent stock split.

Investment exposure was $846,894, hedge exposure was $856,060. and tranche size was $50,000. Adding a hedge would not improve balance:

                   GROUP AND END MARKET           START        END OF MONTH
20 AMBA17P42      Semiconductors     intl   04/18/16  15,124  06/30   9,200
40 CAR17P22.5     Rental Servs       intl   04/18/16  14,480  06/30   5,400
30 CF17P30        Agriculture        intl   04/18/16  11,072  06/30  23,400
120 DB17P15       Banks              intl   04/18/16  19,903  06/30  32,400
20 DISh17P45      Util, Telecom        US   04/18/16   9,704  06/30   6,400
20 IAC17P45       Info Servs      US/intl   04/18/16   8,724  06/30   4,000
60 LCI17P17.5     Drugs                US   04/18/16  21,055  06/30   8,100
20 M17P40         Retail,Variety       US   04/18/16   8,064  06/30  16,400
80 NOV17P27.5     Oil & Gas          intl   04/18/16  27,879  06/30  14,400
20 Rh17P40        Home Furnish     US/Can   04/18/16   9,824  06/30  26,200
10 RL17P95        Apparel            intl   04/18/16   8,416  06/30   9,200
80 TDC17P22.5     Electron Eqpt   US/intl   04/18/16  15,671  06/30  12,800
20 VMW17P50       Software        US/intl   04/18/16  12,224  06/30   8,200

Capital gains

Thousands of US$
  JUL   AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN
   47    73    29   -90                                 -28     -4    26

Irregular Strategy

Buying in the Irregular Strategy has ended and the portfolio is empty.

Capital gains

Thousands of US$
  JUL   AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN
    3     1     2    -4    -9    -7     7                               

Real Estate Fund Strategy

Portfolio

I resumed my purchases. The lapse since 2/25/16 (actually, a 3/28/16 purchase is included in the 11/25/15 purchase) was due to carelessness.

                      DESCRIPTION                 START        END OF MONTH
14 IYR17C72     iShares US Real Estate      08/25/15   6,375  06/30  14,560
42 IYR17C76     iShares US Real Estate      10/23/15  18,395  06/30  31,500
33 IYR18C72     iShares US Real Estate      02/25/16  17,359  06/30  35,475
14 IYR18C75     iShares US Real Estate      12/15/15   8,237  06/30  12,390
28 IYR18C76     iShares US Real Estate      11/25/15  15,438  06/30  22,960
14 IYR18C80     iShares US Real Estate      06/24/16   7,565  06/30   9,170

Capital gains

Thousands of US$
  JUL   AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN
    9   -15    -8    10    -2     2   -15    -5    35   -10      9    36

Easy Strategy

Portfolio

The Easy Strategy portfolio was sold because the January Barometer was negative. The proceeds of $119,948 will be reinvested on October 10.

Capital gains

Thousands of US$
  JUL   AUG   SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN
                     18     3   -22   -39    -1    35    12