In November, the Covestor Concentrated GARP portfolio gained 9.2% for the month, while the S&P 500 rose 3.8%. The month of December usually brings good returns for investors, although the gains can be muted a bit by portfolio rebalancing or other tax related issues like harvesting gains or opportunistic selling for tax efficiency.
I would expect a similar situation this year. In addition, it’s important to consider what a change in interest rate levels could potentially do for the market in 2014.
Here’s a summary of the portfolio’s key holdings:
DigitalGlobe (DGI) is a satellite provider of commercial earth imagery and information services.
Corelogic (CLGX) is an information provider which specializes in data about real estate related industries. A large part of its data centers on property and mortgage information services. In addition, they provide credit information in a variety of industries as well.
Cass (CASS) Information Systems provides information, invoice, and payment processing services to a wide variety of enterprises in the United States. Cass also has a small banking division as well.
Dolby Laboratories (DLB) provides audio and video products for the entertainment industry on a global scale. Much of their revenues come from licensing their technologies on personal computers, laptops, tablets, and smart phones.
In addition, the company makes sound systems for a wide variety of customers, from movie studios, theatres, and network and satellite television providers.
Jamba Juice (JMBA) is a health food and beverage retailer with a presence in 26 states domestically, as well as operations in Canada, the Philippines, and South Korea.
Cash America (CSH) is the largest operator of pawn shops in the United States. The company reported disappointing earnings for the fourth quarter of 2013.
Build-A-Bear Workshop (BBW) is a provider of build your own teddy bears for small children.
Telefonica Brazil (VIV) is the second largest provider of cable TV and wireless phone services in Brazil.
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DISCLAIMER: The investments discussed are held in client accounts as of November 30, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.