Fiscal Q1: Bullish Cross +30.47% v. S&P 500 -10.60%

When Bullish Cross 2.0 went live in mid-June we created different model portfolios in order to demonstrate to our members how to execute a lot of the strategies we discuss on a day to day basis. Three of these portfolios were introduced on Friday, June 17, 2011 while the fourth portfolio was introduced on Friday, August 26, 2011. We continue to put together different models whenever we want to demonstrate how to execute some major investment strategy.

In terms of the performance of these portfolios, we are absolutely crushing it. As of the close on Friday, September 23, 2011 — just about 3-months after introducing these portfolios — Bullish Cross is up a cumulative total of 30.47%, which is actually pretty incredible considering the fact that the S&P 500 is down just about 10.6% over the same exact period.

The cost basis of these Bullish Cross Model Portfolios in total is $4,320,000.00. If someone invested that $4.32 million in the S&P 500 at the moment that Bullish Cross introduced its model portfolios, that person would be down just about half a million dollars ($457,920.00). Their account value would have dropped from $4.32 million to $3.86 million in just 3 months time.

Yet, if this person had hypothetically decided to invest that capital with Bullish Cross instead, he or she would be up $1.316 MILLION and have an account valued at $5,636,085.00. That is a 41.07% difference between how the S&P 500 has performed, and how Bullish Cross has performed over the last 3-month period.

Moreover, even with this outperformance, Bullish Cross holds a massive amount of its portfolio in cash on the sidelines. In fact, over $1.9 million or 33.7% of the $5.636 million overall portfolio is held entirely in cash. The chart below compares Bullish Cross to the S&P 500 since June 17, 2011 when the portfolios were introduced. Please notice that while the September 23, 2011 comparison to the S&P 500 is perfectly accurate, some of the historical points are very close estimates. The September 23, 2011 NAV is exactly accurate however. And that’s all the matters in the end:

We’ll be posting more details later in the week…

6 Responses to Fiscal Q1: Bullish Cross +30.47% v. S&P 500 -10.60%

  1. Congratulations, Andy, great work! Move over Buffett, step aside Berlowitz, there’s a new man in town.

  2. Thanks for all the hard work Z ….I’m looking forward to killer BC 2.0!

  3. Thank you very much Andy! I’ve especially enjoyed telling my wife: “You know that the whole stock market has tanked lately, right? So let me just show you what our portfolio is doing…” You’re making me look really good!

  4. Okay, I will play the devil’s advocate – for my learning sake… I am asking this because I see these type of returns are possibility because of BC and Andy… My thinking was limited to 30-40% being HUGE returns…
    Why does other big guys not able to give these type of high returns?
    – is the answer that it is hard to do consistently?
    – or is it because the fund amount is small?

    • Hard to do consistently – Yes. The fund amount is small – makes it easier. Generally, big guys have things going against them that you, me and BC do not. (And 30-40% IS still huge.)

      Mutual funds have limitations on how much of a company’s stock they can own and how much of their capital can be in any one company. They can’t do options either. Options are like rocket fuel. They can send your returns to the moon or they can blow you to smithereens if something goes awry, so it makes sense that mutual funds can’t mess with them.

      Hedge funds attract money based on a promise to follow a certain strategy, like momentum or value or buy 100 stocks in hopes of “delivering alpha while reducing beta.” A big problem is that finance schools teach budding hedge fund managers they cannot beat the market and BC’s performance is like 1,000,000 monkeys typing away to deliver Hamlet. The academics say you can’t beat the market, but maybe you can reduce volatility and many managers that control lots of money seem to believe this to be true. Dummies.

      Andy can confirm or deny, but to me he does a great job of blending investment styles and strategies to a) paint a complete picture on direction of a security and b) figure out a blend of agressive growth and safe strategies to capitalize off of that direction. If you can do this consistently, beating the market by wide enough margins to find financial independence is pretty easy. Time and discipline is all you need. Someone with Buffett’s capital base wouldn’t be able to use a lot of these strategies, but who cares. You’re not Buffett.

  5. Way to go Andy. Fantastic.