Portfolio Three is our third longest lived portfolio. The beneficiary has contributed $2000 and the trustee $4000 over 4 years and the current value of the portfolio is $5,125. This is a negative return of (14%) over the life of the portfolio or about negative (6%) a year adjusted for the timing of cash flows.
The portfolio was above the $6000 “break even” mark during the market highs earlier in the year but now it is back down. This portfolio started during some of the toughest times including the 2008 market crash and the recent correction but since we are looking at the long haul and the fact that the beneficiary has put in $2000 and the current value is over $5000 was are still doing fine. But still… would like to at least get this portfolio over the “break even” point even if it is just psychological.
Like the other portfolios we are having problems with URBN since it pays no dividends and hasn’t been a great market performer. This still seems to be a reasonably well run company with no debt and a focus on profitability so we will continue to watch it and maybe dump it for this year across all the portfolios.