Sunday, January 1, 2012

Returns -- Through December 2011

This Covered Calls Advisor blog began in September 2007. The performance results have been as follows:















The Covered Calls Advisor uses the Russell 3000 Index as a benchmark against which the Covered Calls Advisor Portfolio is compared. The table above shows that the Covered Calls Advisor Portfolio has outperformed the Russell 3000 benchmark by a total of 16.94% over the 4.3 years that this blog has existed. As shown above, the corresponding average compound annual return-on-investment outperformance of 3.85% per year. This average is within the Covered Calls Advisor's expected range of +3% to +5% outperformance for long-term results obtained from a well-managed covered calls investing program.

As also shown in the table above, the Covered Calls Advisor Portfolio (CCAP) underperformed the benchmark Russell 3000 index by 1.60 percentage points (-0.57% minus +1.03%) in calendar year 2011. The primary reason for this relative underperformance is the substantial underperformance of emerging market equities compared with U.S. equities during this period. The benchmark Russell 3000 index consists solely of U.S. stocks whereas the Covered Calls Advisor's Portfolio has contained about 30% exposure to international (primarily emerging market) equities. While this emerging markets exposure has penalized comparative performance during the past two years, the Covered Calls Advisor maintains a commitment to the long-run benefits of global investing, namely:
(1)Improved portfolio diversification; and most importantly
(2)Achieving overall portfolio return-on-investment outperformance.

As 2011 concludes, my wish for each of you is for a Happy and Prosperous New Year in 2012!

And remember the Covered Calls Advisor's motto: "Stick With Covered Calls".

Godspeed,
Jeff