Portfolio Examinations

by | Sep 20, 2012 | Archives

Looking at the portfolios of successful managers can help us get ideas on finding investing profit through value.

Studying the philosophy of portfolio managers can also lead to profits because there is always something we do not know.

CBS News Article

Japanese & Chinese vessels shown in  CBS News article linked below.

Today’s expansion of the Japanese-Chinese island dispute led me to remember three philosophical investing tips from a young, very bright portfolio manager at Jyske Invest.

Jyske Invest is one of the portfolio managers I study because they use a VAMOS system.  They study thousands of shares around the world.  All stocks are given a score on VAlue, MOmentum, and Strength, (VAMOS).  Each of these three attributes is rated ten (highest) to one (lowest.   Then shares with the best scores over five (in each attribute) are selected for further screening.  About 25% of all the shares they track get looked at after passing this acid test.

The three philosophical tips  are:

#1: The consensus may be wrong…truth is not created through repetition of an error.

#2: Risk is your partner…for better or for worse.  You cannot succeed without making mistakes…if you opt for certainty, you will die anonymously.

#3: We know less than we think we do…and that’s OK.

While so many eyes are focused on Europe, the Middle East and the Fed… Asia could sneak up on us.  What we do not know is “What’s next?”

I recently enjoyed a novel that provides insights into China’s problems in the disputed islands written by Bob Gandt… Blackstar Rising.

This is a great read if you like war stories.   Beyond the story… there are two themes in this novel that are important to our investments, savings and pensions.  These themes are about China and technology.

China’s growth has been the engine that powered the global economy since the 1990s.  The world needs exciting new technology to fuel the next wave of productivity and keep the global economy moving along as China’s growth slows.   Such technology usually comes from war.

The island disputes between China and Japan, China and Russia, China and Taiwan, China and Vietnam of course are mostly about oil.

These are unpopulated islands disputed for centuries perhaps but never really worth much bother until oil and natural gas was discovered in these areas.   RT News (Russia Today) has a good video about the conflict. See a link below.

The problem is there are so many flashpoints… in so many places… it is extremely time consuming to try and track them all.  A conflict in this area could hinder or help the global economy.

This is why I track successful portfolios instead of the news.  Seeing what high performance managers are doing cuts through all the noise and lets me see decisions that intelligent investors are making due to the global news and the global economic action.

One of the managers I track is Jyske Global Asset Managers (JGAM).  I use JGAM’s service myself… so like to see where they are investing.

Recently I asked Senior VP at JGAM for their updated portfolios and he replied:  Hi Gary,  I have attached the portfolios but not with the decisions made at the latest IC meeting as we are still in “trading mode”. Some of the bonds we had chosen are a little difficult to buy as the ECB and the Fed easing has sent interest rates lower. Hopefully I can show the new investments at your October seminar.  Kind regards, Thomas.

Here are the portfolios. Click on the photos to enlarge.

JGAM Low Risk Portfolio

Jyske JGAM Low Risk

Jyske JGAM Low Risk

JGAM Medium Risk Portfolio

medium risk w/o leverage

JGAM Medium Risk Portfolio With Leverage

Jyske JGAM Medium Risk

JGAM High Risk Portfolio

Jyske JGAM High Risk Portfolio

You can ask questions direct to me or contact Thomas Fisher of JGAM at fischer@jgam.com

Non US investors should contact René Mathys of Jyske Private Bank  at mathys@jbpb.dk


Meet Thomas Fischer and see JGAM’s portfolio updates at out October 5-6-7 seminar.

CBS News Article

RT News Video on Island conflict