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2016 August 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 hedges

Selection list

The selection list was generated before the August 5 market opening.

                                    MERIT    PRICE   GROUP AND END MARKET  
QUNR   Qunar Cayman Islands          238     29.62  Entertainment       Chn
TDC    Teradata Corp                 229     24.78  Electron Eqpt   US/intl
DB     Deutsche Bank                 170     13.40  Banks              intl
RH     Restoration Hardware          169     29.55  Home Furnish     US/Can
ENDP   Endo Intl                     157     16.56  Drugs              intl
RL     Ralph Lauren                  156     88.52  Apparel            intl
M      Macy's, Inc                   148     33.10  Retail,Variety       US
BIIB   Biogen Inc                    148    242.03  Biotechnology      intl
AMX    America Movil                 148     12.18  Util, Telecom  Mex/intl
DANG   E-Commerce China Dangdang     144      5.93  Retail, Special     Chn
LBTYA  Liberty Global                142     27.49  Util, Telecom        UK
WFM    Whole Foods Market            142     32.31  Food, Diverse   US/intl
PRGO   Perrigo Co                    139     90.89  Drugs              intl
BBBY   Bed Bath & Beyond             139     42.26  Home Furnish     US/Can
KSS    Kohl's Corp                   138     36.74  Retail,Variety       US
NTAP   NetApp Inc                    137     23.48  Electron Eqpt      intl
CCJ    Cameco Corp                   137     10.61  Basic Matls        intl
POT    Potash Corp                   135     16.20  Agriculture        intl
BEAV   B/E Aerospace                 132     45.15  Aerosp & Def    US/intl
YY     YY Inc                        130     33.59  Info Servs          Chn

Portfolio

Hedge exposure was $1,035,518, investment exposure was $1,009,970, and tranche size was $70,000. Adding a hedge would not improve balance:

                   GROUP AND END MARKET           START        END OF MONTH
20 AMBA17P42      Semiconductors     intl   04/18/16  15,124  08/31   1,200
100 AMX17P11      Util, Telecom  Mex/intl   07/06/16   7,987  08/31   5,500
6 BIIB17P245      Biotechnology      intl   07/06/16  14,755  08/31   3,660
40 CAR17P22.5     Rental Servs       intl   04/18/16  14,480  08/31   1,600
30 CF17P30        Agriculture        intl   04/18/16  11,072  08/31  16,650
120 DB17P15       Banks              intl   04/18/16  19,903  08/31  20,400
20 DISH17P45      Util, Telecom        US   04/18/16   9,704  08/31   5,000
20 IAC17P45       Info Servs      US/intl   04/18/16   8,724  08/31   1,700
60 LCI17P17.5     Drugs                US   04/18/16  21,055  08/31   2,400
20 M17P40         Retail,Variety       US   04/18/16   8,064  08/31  11,500
80 NOV17P27.5     Oil & Gas          intl   04/18/16  27,879  08/31   8,000
20 RH17P40        Home Furnish     US/Can   04/18/16   9,824  08/31  17,400
10 RL17P95        Apparel            intl   04/18/16   8,416  08/31   2,900
80 TDC17P22.5     Electron Eqpt   US/intl   04/18/16  15,671  08/31   3,200
20 VMW17P50       Software        US/intl   04/18/16  12,224  08/31   1,400

Capital gains

Thousands of US$
  SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN   JUL   AUG
   29   -90                                 -28     -4    26   -54   -42

Comprehensive Strategy investments

Selection list

The selection list was generated before the August 25 market opening.

                                    MERIT    PRICE   GROUP AND END MARKET  
ARCC   Ares Capital Corp             812     15.92  Investments          US
MCD    McDonald's Corp               777    114.87  Restaurants     US/intl
CCI    Crown Castle                  598     94.77  Util, Telecom    US/Aus
RAI    Reynolds American             561     50.72  Tobacco Prods        US
SPG    Simon Property                541    214.24  Real Estate        intl
MO     Altria Group                  511     66.16  Tobacco Prods   US/intl
HD     Home Depot                    506    135.06  Home Furnish        NAm
LMT    Lockheed Martin               478    248.12  Aerosp & Def    US/intl
EL     Estee Lauder                  469     90.50  Personal Prods     intl
AZO    AutoZone Inc                  435    777.12  Auto Parts       US/Mex
UNH    UnitedHealth Group            435    139.87  HC Plans             US
TJX    TJX Companies                 432     78.58  Retail,Variety  US/intl
PM     Philip Morris                 420    100.13  Tobacco Prods      intl
STZ    Constellation Brands          403    166.61  Beverage, Hard     intl
CCE    Coca-Cola European Partners   402     38.36  Beverage, Soft       EU
ROST   Ross Stores                   398     63.87  Retail,Variety       US
CMCSA  Comcast Corp                  390     65.69  Entertainment      intl
NOC    Northrop Grumman Corp         380    214.00  Aerosp & Def    US/intl
TRV    The Travelers Cos             379    117.11  Insurance       US/intl
AMT    American Tower                379    114.57  Real Estate        intl

Portfolio

Investment exposure was $1,072,190, including $70,000 for the slated investment, and hedge exposure was $1,099,224. Closing a hedge would not improve balance.

I bought more CCI because all stocks were disqualified on the first pass. ARCC, MCD, CCI, RAI, HD, LMT, EL, AZO, UNH, TJX, STZ, CCE, CMCSA, and TRV were already investments; SPG and AMT were in the Real Estate group; and MO, PM, ROST, and NOC were in the same group and end market as existing investments:

                   GROUP AND END MARKET           START        END OF MONTH
500 CCI           Util, Telecom    US/Aus   12/15/14  37,778  08/31  47,385
4800 GPAGF        Packaged Goods  US/intl   09/26/14  49,921  08/31  63,661
60 ARCC18C15      Investments          US   03/28/16   4,315  08/31   6,000
60 ARCC18C17      Investments          US   05/25/16   1,495  08/31   1,800
2 AZO18C800       Auto Parts       US/Mex   07/25/16  15,468  08/31  10,100
14 CCI18C95       Util, Telecom    US/Aus   08/25/16   9,259  08/31   9,240
20 CCE17C50       Beverage, Soft       EU   04/24/15   5,824  08/31   7,700
20 CMCSA18C55     Entertainment      intl   01/25/16  14,564  08/31  26,600
14 EL17C85        Personal Prods     intl   10/23/15  11,079  08/31   9,660
10 HD18C130       Home Furnish        NAm   02/25/16  13,246  08/31  14,440
4 LMT18C220       Aerosp & Def    US/intl   12/15/15   8,567  08/31  13,000
3 MCD17C90        Restaurants     US/intl   12/15/14   2,320  08/31   7,698
10 MCD18C125      Restaurants     US/intl   06/24/16   7,576  08/31   4,650
10 NI117C45       Util, Energy         US   01/27/15   3,096  08/31   5,200
28 RAI17C38.75    Tobacco Prods        US   02/25/15   7,075  08/31  31,640
14 STZ17C125      Beverage, Hard     intl   08/25/15  18,611  08/31  58,380
14 TJX17C70       Retail,Variety  US/intl   03/25/15  11,457  08/31  12,740
10 TRV18C115      Insurance       US/intl   11/25/15  10,812  08/31  10,430
6 UNH18C135       HC Plans             US   04/25/16   8,845  08/31   9,000

Capital gains, investments

Thousands of US$
  SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN   JUL   AUG
         50     4    -2    -7    13    24   -14     -5    21    17   -35

Capital gains, stocks

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

Capital gains, call options

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

Irregular Strategy

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

Capital gains

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

Real Estate Fund Strategy

Portfolio

                      DESCRIPTION                 START        END OF MONTH
14 IYR17C72     iShares US Real Estate      08/25/15   6,375  08/31  15,260
42 IYR17C76     iShares US Real Estate      10/23/15  18,395  08/31  30,240
33 IYR18C72     iShares US Real Estate      02/25/16  17,359  08/31  40,095
14 IYR18C75     iShares US Real Estate      12/15/15   8,237  08/31  13,860
28 IYR18C76     iShares US Real Estate      11/25/15  15,438  08/31  25,760
14 IYR18C80     iShares US Real Estate      06/24/16   7,565  08/31   9,170
20 IYR18C83     iShares US Real Estate      08/25/16  10,564  08/31  10,300
14 IYR18C85     iShares US Real Estate      07/25/16   7,719  08/31   6,020

Capital gains

Thousands of US$
  SEP   OCT   NOV   DEC   JAN   FEB   MAR   APR    MAY   JUN   JUL   AUG
   -8    10    -2     2   -15    -5    35   -10      9    36    35   -28

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