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written by reader Timely Schedule of Biotechnology Equitys Gains and Losses

By SoGiAm, December 14, 2014

This schedule shall be maintained by any IRR as a(n) event(s) occur(s) in the following format: $XYZ, Link/source,. Calculated columns/cells (TBD) may include: SP, %age SP change, Volume, MC, etc.; brief summary/comment including original comment(s)/thread(s)s/post#(s) . 125-150 characters (max), author. Schedule to exist on sgumdev.stockgumshoe.com/microblog utilizing google drive. This spreadsheet greatly reduce the biotech posts in currenty threads and consolidate information between threads. Perpetual Prosperity to ALL!-Benjamin
example: HEADER: Nasdaq.com US Market ClosedDec 12, 2014CAC 40 4108.93-116.93 ▼-2.77%NIKKEI 225 17371.58114.18 ▲0.66%FTSE100 6300.63-161.07 ▼-2.49%
Stock Market Activity
NASDAQ Composite Volume: 1,834,060,354
Index Value Change Net / %
NASDAQ 4653.60 -54.56 ▼1.16% NASDAQ-100 (NDX) 4199.28 -47.2 ▼1.11% Pre-Market (NDX) 4211.91 -34.57 ▼0.81% After Hours(NDX) 4200.08 0.8 ▲0.02%
DJIA 17280.83 -315.51 ▼1.79% S&P 500 2002.33 -33 ▼1.62%
Russell 2000 1152.45 -14.51 ▼1.24% Data as of Dec 12, 2014
View Major Indices 12:00 PM 3:00 PM 4660 4680 4700
Editor’s Picks
Closing Update: Stocks Finish Worst Week Since January With Steep Sell-Off; New Fall for Crude Oil Keeps Markets in Swoon
Daily Dividend Report: EIX, EMC, STT, RL, FMC, TRN, BWS
GE Boosts Dividend By 5% Latest Market News Headlines
3 Best Renewable Energy Stocks for 2015
How a Ford Pickup Became America’s Top Luxury…
How AT&T and Verizon’s Loss is Your Gain
A Breakdown of How Your Social Security Tax…
MARKET SNAPSHOT: Crashing Crude May Blow A $1.6…
The Biggest Risk for Apple Inc. Stock in 2015 and…
SpaceX Invents an X-Wing … Sort Of: Introducing…
This Tiny Biotech Worries Sanofi and Shire, and…
Believe it or Not, Amazon Isn’t the King of…
Aerojet Rocketdyne Propulsion Supported Mission…
More Market Headlines
Featured Story
3 Things Starbucks CEO Howard Schultz Wants Investors to Know
Get a glimpse into the future of the coffee chain
Featured Video
vew More Videos
SCHEDULE DATA:Stock Activity
Most Active Most Advanced Most Declined Dollar Volume Unusual Volume
Company Last Sale* Change Net / % Share Volume
Calithera Biosciences, Inc. (CALA) $29.85 6.65 ▲ 28.66% 1,167,588
ChemoCentryx, Inc. (CCXI) $5.60 1.11 ▲ 24.72% 7,777,656
Oncothyreon Inc. (ONTY) $2.02 0.31 ▲ 18.13% 7,735,300
Sangamo BioSciences, Inc. (SGMO) $16.53 2.46 ▲ 17.48% 2,530,356
Cerulean Pharma Inc. (CERU) $6 0.83 ▲ 16.05% 75,458
Read more: http://www.nasdaq.com/#ixzz3Lt0mWKHa
http://www.nasdaq.com/article/why-chemocentryx-incs-shares-shot-60-higher-today-cm422798 , calcs1,2,3,,, TLOGolgytes …

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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savethemanatee
savethemanatee
4 years ago

So my wife inherited an account several months ago. Although I don’t consider the account huge, it was managed by a South Florida high-wealth asset management firm. I’ve found it instructive to see how they allocated the assets, and Ben thought it might be worth sharing.

Broadly speaking, there are three broad categories of assets in this portfolio: Individual stocks, mutual funds, and fixed income (there was also an annuity we cashed out, which I’ll ignore). I suspect that the owner of the portfolio advised the wealth management firm how conservative to be with her assets, and they adjusted the relative proportions accordingly. Knowing this individual pretty well, and looking at the allocations, it seems as though she requested that they be pretty conservative and focus more on wealth preservation than growth.

This first e-mail will focus only on fixed income. I’ll discuss the other two categories later.

The fixed income investments were as follows:

Intermediate Bonds: 35% of the total fixed income category
High Yield Corporate Bonds: 12% of fixed income
Municipal Bonds: 24% of fixed income
World Bonds: 16% of fixed income
“Non-traditional” Bonds: 9% of total
Emerging Markets Bonds: 3.3% of total

There may be a rounding error in there.

A couple of notes:

(1) There are a number of corporate bond funds. The ones chosen for this account were: TIHYX, AHITX, and SHYAX (I sold SHYAX because the fees were higher than normal, but will likely keep the others). The yield on these funds aren’t as high as available elsewhere—I think they must not use any leverage to boost returns as others do, but make the funds more risky.

(2) There seems to be quite a bit of overlap in the countries represented in the World Bond Funds and the Emerging Markets Fund, so I don’t know how those Morningstar classifications are determined. At any rate, the world funds were SEFIX and TTRZX, and the emerging markets bond fund was SITEX.

(3) There are dozens and dozens of municipal bond funds available. While the ones in this portfolio were ETFs, I prefer CEFs (close-ended funds), which trade like stocks and generally have higher yields. I’ve been making the switch to some of the better CEFs.

(4) What the heck are non-traditional Bonds? Beats me; that’s the classification given by Morningstar, but it looks like it is mostly made up of secured loans (such as packages of mortgages) and corporate loans. That ticker is DFLEX, which is a DoubleLine fund.

Here’s my final thought. This portfolio had something like 30-35% allocated to fixed income. For me that’s too high; I prefer something down around 15-20%, but I’m still a young’un. Anyway, my recommendation would be that, regardless of what proportion of your portfolio you decide to put in fixed income, you then should consider allocating that amount among intermediate bonds/munis/corporate/world bonds, etc. in approximately the percentages listed above. At least it seems like a reasonable place to start.

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savethemanatee
savethemanatee
4 years ago

Quick post on the second category, mutual funds. To be honest, this is something I just don’t get; I think there should have been no mutual funds in this portfolio because the holdings could have been easily replicated through individual stock purchases at a lower cost (you’ll understand why when I get to the post about individual stock holdings). Actually, I’m overreaching a little. I could see holding funds of stocks that are hard to replicate, such as baskets of emerging market companies or small/mid caps.

Anyway, there were a ridiculously high number of stock funds in this portfolio–I think 14 in total, not including the bond funds already discussed–some of which are repetitive (and some of which, as I stated above, have relatively high annual expense ratios).

There are subtle differences among them so I don’t know the best way to organize them here. For instance, thre are six that consist of large companies, either “growth”-oriented, “value”-oriented, or a “blend” of both, and with their holdings consisting of between 75%-90% US stocks and the remainder International stocks.

In addition, there are:

Two large US stock-only mutual funds (consisting of around 40% of the mutual fund category)
a small/midcap US stock fund (consisting of just 4% of the total mutual fund category)
Two large foreign-stock only funds, one focused on “growth” and one focused on a “blend” (consisting of approximately 12% of the value of all the mutual funds)
Three emerging markets stock funds (consisting of around 20% of the value of all the mutual funds)
One “world allocation” fund consisting of 1/3 large US stocks, 1/3 large international stocks, and 1/3 bonds (just 4% of the mutual fund category).

Note that the percentages listed above don’t include the funds that have both a US and foreign stock component, so it would be inaccurate to say that 12% of the holdings here were in non-emerging market foreign stocks. If you divide up the components of the funds that included both US and foreign stocks, and add them in, it’s more than that.

I’ll also note that I am generally very skeptical about the distinction between “value” and “growth” companies. There is a ton of overlap in the holdings of these funds, For instance, I think every single non-foreign fund in this portfolio has Microsoft as a top ten holding (The top holdings of each fund are listed on Morningstar’s site for easy perusal). Is it growth or value? Who cares?

I kind of understand how it happened: There seems to have been a manager for the “US growth stocks,” a separate manager for “US value stocks,” a different manager for “small US stocks,” foreign stocks, etc., and each manager included both stocks and funds in their portion of the portfolio, without any regard for what the other managers were doing. The portfolio was not looked at holistically–that is, a complete whole. Which is why there seems to be so much overlap, even though the value of each mutual fund holding was relatively small. This is a great lesson on why we all need to look at our holdings as one portfolio even if there are different accounts within in (such as both a taxable and tax-deferred account).

I have since sold all the US-based mutual funds, and the foreign funds that had high fees.

I think that’s it for the funds.

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savethemanatee
savethemanatee
4 years ago

All right. We are now reaching the meat of this professionally-managed inherited portfolio, which consists of the stock holdings. There’s a lot of information that can be gleaned from these holdings. I’ll try to be concise, and limit discussion to what I think is most relevant, but please ask questions if there’s anything more you’d like to know here.

I think it’s important to reiterate here that multiple asset managers worked on this account. As I understand it, this portion of the portfolio (which includes some of the mutual funds discussed previously, BTW), was split into several “baskets” with differing style: Large-Cap Growth, Large-Cap Core (whatever that is), Large-Cap Value, Small-Cap Growth, and International Developed Markets. The “baskets” were split as follows:

Large-Cap Growth: 23% of value of all stock holdings
Large-Cap Core: 13% of value of all stock holdings
Large-Cap Value: 23% of value of all stock holdings
Small-Cap Growth: 13% of value of all stock holdings
International: 27% of value of all stock holdings

So, another way to look at it is: 60% large-cap domestic, 27% international (large, mid, and small cap), and 13% small-cap domestic.

What is the difference between Large-Cap Growth, Large-Cap Core, and Large-Cap Value? Here’s a list of five holdings from each category, chosen at random:

Large-Cap Growth: Abbott, Adobe Systems, Google, ADP, Blackrock.
Large-Cap Core: 3M, Apple, Dollar General, Honeywell, Johnson & Johnson
Large-Cap Value: AT&T, CVS, Merck, Pepsi, Proctor & Gamble.

There are also some stocks that are given OTHER classifications: Mid-cap growth, small-cap value, small-cap core, emerging markets, etc., and it is likely that the same manager handled all small-and mid-cap domestic, and the same manager handled both foreign developed and emerging markets, even though that doesn’t completely mesh with the description of the five managed accounts.

Anyway, that’s all background.

There are about 210 different stocks in this portfolio, which is WAAAAYYYYYY overkill, especially in light of the size of many of these holdings. What I suspect was going on here is that each individual manager puts the same stocks in the same proportion in all the client accounts he or she manages, and the number of shares is simply determined by the size of the account. So I am guessing that the stocks in this account, in the same proportion, was exactly the same as accounts ten, twenty, even thirty times larger. (note: the sheer number of different stocks in this account, many of which being ridiculously small in size, makes me really question why there were any large-cap domestic mutual funds, as alluded to in the earlier post).

I can’t list all 210 stocks, so what I am going to do is simply give you the first 50 or so. To give you a sense of size, the largest stock holding was approximately 4 times the size of the last one I am giving you. CVS, at # 14, is twice the size of the stock at the bottom. Only the top nine stocks are more than 2.5 times the last on the list—so it is pretty top-heavy. The top nine stocks. combined, constitute around 17.5% of the value of all the stocks (through Google/Alphabet).

Let me note also that there are no REITs, no MLPs, and maybe only one or two electric utilities. The other sectors seem to be evenly represented.

NSRGY NESTLE S A SPNSD ADR REPSTING REG SHS
ADBE ADOBE SYSTEMS INC DELAWARE
MSFT MICROSOFT CORP
DG DOLLAR GENERAL CORP NEW
ADP AUTOMATIC DATA PROCESSING INC
CAJ CANON INC SPON ADR
ACN ACCENTURE PLC IRELAND CLASS A NEW
V VISA INC CLASS A
GOOG ALPHABET INC CL C
UNH UNITEDHEALTH GROUP INC
NKE NIKE INC CL B
MMC MARSH & MCLENNAN COS INC
LOW LOWES COMPANIES INC
CVS CVS HEALTH CORP
NICE NICE LTD SPONS ADR
ALPMY ASTELLAS PHARMA INC ADR
ZTS ZOETIS INC CL A
ORCL ORACLE CORP
KT KT CORP SPONSORED ADR
CEO CNOOC LTD SPONS ADR
SNN SMITH & NEPHEW PLC NEW SPONS ADR
ALGN ALIGN TECHNOLOGY INC
SBUX STARBUCKS CORP
IHG INTERCONTINENTAL HOTELS GROUP PLC NEW SPONS ADR 2017
AMGN AMGEN INC
ORLY O REILLY AUTOMOTIVE INC NEW
SJM SMUCKER JM COMPANY NEW
PM PHILIP MORRIS INTL INC
FB FACEBOOK INC CL A
GWW GRAINGER W W INC
JNJ JOHNSON & JOHNSON
STT STATE STREET CORP
ABT ABBOTT LABORATORIES
CVX CHEVRON CORP
ABC AMERISOURCEBERGEN CORP
MCHP MICROCHIP TECHNOLOGY INC
IT GARTNER INC
MLCO MELCO RESORTS & ENTERTAIMENT LTD ADR
KR KROGER COMPANY
OXY OCCIDENTAL PETROLEUM CORP
SNE SONY CORP ADR NEW 7/74
OMC OMNICOM GROUP INC
GOOGL ALPHABET INC CL A
BKNG BOOKING HOLDINGS INC
ITW ILLINOIS TOOL WORKS INC
MRK MERCK & COMPANY INC NEW
REGN REGENERON PHARMACEUTICALS INC
DBSDY DBS GROUP HLDGS LTD SPONS ADR
WNS WNS HOLDINGS LTD SPONSORED ADR
RDS/A ROYAL DUTCH SHELL PLC SPONSORED ADR REPSTG A SHARES
MA MASTERCARD INC CL A

Also, just for gi