Greetings, clients and friends, and happy second quarter! We certainly hope this quarter brings less drama than last, and indications so far are this will be the case.
The Camarda portfolio board met yesterday and among other items, such as further development of the upgraded ISIS™ version called AIMS™ (Allocated Investment Management Strategy™), the agenda included our annual review of stock holdings in Viking and Columbia (two portfolios intended to identify and acquire attractive stocks trading for significantly less-than-fair value, and to hold them until fair value is attained). Essentially, we target stocks using a Warren Buffet-type “buy quality cheap” approach. As a result, a number of stocks, which are now trading at closer to our definition of fair value, will be sold and replaced with others we have identified as meaningfully undervalued and good candidates for market appreciation. Your five-member board—comprised of me, Dr. T. Bui, Jonathan Camarda, Sonja Elia, and Kim Camarda—voted unanimously to make these changes. Camarda’s investment outlook believes that a value approach—targeting good companies apparently mis-priced by the market—offers the best potential for profit in a U.S. stock market now trading, as a whole, at or above fair value. There are seven changes to Viking and eight changes for Columbia. Please note, that as in prior years, this is an annual portfolio update, and that we do not anticipate more frequent trading in these portfolios than has been our habit. We will also take this opportunity to rebalance these portfolios as a risk control measure.
The board also decided to remove the U.S. dollar hedge feature from some non-U.S. stock positions in ISIS™ and Offshore portfolios, intended to allow investors profit to from a rising dollar. We added the hedge a little over a year ago in anticipation of an appreciating U.S. dollar, and believe this decision produced real value in overall performance and risk control. We now believe the U.S. dollar uptrend to have largely concluded, and the board has also unanimously voted to remove the hedge, which will result in some changes to ISIS™/Offshore to unhedged mutual fund or ETF positions.
If you have any questions regarding these changes, please do not hesitate to contact your Personal Portfolio Advisor, or me, as Chairman of the Portfolio Board, directly, and I will be happy to explain our rationale or details of individual stock decisions—my direct email is firstname.lastname@example.org. Thank you, and happy spring!