Most major indices finished the first quarter of 2013 with double digit gains. Mid Cap stocks led the pack, with S&P 400 Midcap Index up 13% in 2013 Q1, followed by Russell 2000 Index, up 12% in 2013 Q1, while large cap index S&P 500 advanced 10% in 2013 Q1.
We continue to expect 2013 to be a stable year for investments as global recovery and strong corporate earnings momentum continue. We believe, like 2012, 2013 should be another good year to pick individual stocks as correlations between stocks remains at normal level.
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Equity market took an expected pullback in February, giving many investors an opportunity to participate in the growth. We expect equity market to take another minor pullback in April to relieve current overbought conditions, and we believe sideline money will then push all major indices into all time high this summer.
Our 8 IRA accounts behind our 8 Covestor Models currently hold near 200 securities, diversified across Equity, Fixed Income, and REIT asset classes, covering all 10 major sectors (Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Materials, Telecommunication Services, and Utilities). It is our firm belief that diversification is one of the key elements to long term investment success.
Our best performing Covestor Model for 2013 Q1 is our Opportunistic Value Model, which was up 26.8% during 2013 Q1. Opportunistic Value Model looks for undervalued mid/small cap stocks through computer algorithms without using any margin or leverage.
Our worst performing model in 2013 Q1 is the Tactical Fixed Income Model, which went up 5.3% during 2013 Q1.
Opening accounts of Analytic Investment Management LLC’s models through Covestor is not personalized investment advice, and Analytic Investment Management LLC does not take Covestor clients’ personal financial needs into consideration. Investing in the financial markets involves risk, including the risk of principal loss. Don’t invest with money you can’t afford to lose. Information in this report is in no way intended as personalized investment advice and should not be interpreted as such. Portfolio performance result is provided by Covestor. The portfolio performance return is calculated from one single account and does not reflect the deduction of management fees. The portfolio performance return reflects the reinvestment of dividends. Past performance is not necessarily indicative of future results. Performance results do not take into account any tax consequences. Focus models are concentrated portfolios with less than 20 positions. Concentrated portfolios carry significantly more risk than diversified portfolios and may not be suitable for every investor.
Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.