March performance update
Here with a March performance update. The key numbers for the month are:
Prime: +8.52%
Select: +6.45%
SPY ETF: +2.77%
Bogleheads Portfolio (20% BND, 80% VTI): +2.36%
It was a fantastic month for SPC’s strategies. Prime and Select both produced monthly returns roughly commensurate with average historical annual returns for the market as a whole, and did that, notably, by indexing on relatively boring industrial companies amid a lot of continued hype of AI in the technology sector. Of course that wasn’t deliberate, that is just what the value ratios SPC’s models follow said to do. In particular, Prime and Select both had unusually large weights on oil and gas, and these were some of the biggest winners in the month across the two strategies. Within Prime, Valero, Phillips 66, and Marathon were up roughly 20 percent, 14 percent, and 18 percent, respectively (outside of oil and gas, but still in the “boring industrial” category, GM was also up 11 percent). Within Select, EOG Resources and Pioneer Natural Resources were up 10 percent and 12 percent respectively (homebuilders in Select also did well).
