Portfolio Update - May 2016
The continued depression in oil prices, coupled with a flight to quality and a resulting weakness in smaller cap stocks led to disappointing portfolio performance over the last 12 months. The following chart shows the relative performance of the S&P 500 index of large-cap stocks, the Nasdaq Composite index of technology stocks, and the Russell 2000 index of small-cap stocks.
Because of the flight to quality, portfolios holding non-S&P 500 stocks typically underperformed over the last 12 months. The Greystone Equity Fund was no exception, as can be seen in the chart below.
Portfolio Update - June 2015
This most recent twelve months, from June 2014 through May 2015, has been a challenging year for The Greystone Equity Fund relative to the S&P 500, as shown in the graph below. Whereas in 2013-2014 the Fund outperformed the index, during the last twelve months the Fund earned 6.23% while the benchmark returned 11.79%. The under-performance was largely the result of the calamitous drop in the price of oil, and the consequent drop in energy-related stocks. Our analysts, however, have taken the long view with respect to oil and voted to largely maintain Fund exposure to energy stocks.
Portfolio Rebalancing - May 2015
Student managers in the Greystone Equity Fund are responsible for managing the portfolio assets. At their last meeting, in May, they made some minor changes. Two news positions were added, in Atwood Oceanics, Inc. (ATW) and Visa Inc. (V). Among the other changes, positions in M&T Bank (MTB), Hershey (HSY), PepsiCo (PEP), Verizon (VZ) were reduced, and the position in Alliance Resource Partners (ARLP) was closed out.
Portfolio Update - Feb 2015
The support that oil has found around $50 has led to a partial recovery in several of our positions, including FANG, FRAK and LYB. We continue to hold these positions in anticipation of a further recovery as summer approaches. Portfolio value as of Feb 28th 2015 was $142, 505.
Portfolio Performance - 2014
The performance of The Greystone Equity Fund in 2014, relative to its benchmark, the S&P 500, was promising through the late summer. In the fall, however, performance slipped, exacerbated by the sell-off in the energy sector that began in September and continued through year-end, reflected by a drop of 17% in the S&P 500 Energy Index. For the twelve months through Dec 31st the Fund returned 5.13%, trailing the S&P 500's total return of 13.6%. The year-end portfolio value was $135,405.
Student managers in the Greystone Equity Fund are responsible for managing the portfolio assets. At their last meeting, in December, they made the decision to largely maintain their current holdings in the energy space, notwithstanding the recent sell-off in oil. They added new positions in Disney, Reynolds American, Palo Alto Networks, Verizon and Alliance Resource Partners, and reduced or closed out positions in Pfizer, Freeport-McMoran and NextEra, among others.