Update on the End of the 2014 Model Portfolio – Blended Income

As we mentioned a couple days ago we went ahead and liquidated the 2014 Blended Income Portfolio at the close on 3/31/2015.  The 2015 Blended Income Portfolio is very similar and we will move ahead with just the 2015 portfolio for this year.  As we try to stay caught up (which we never are) on the website there is only so much we can do and running 2 portfolios that are very similar is not something that is very productive.

The 2014 Blended Income Model was a diversified portfolio that performed extremely well with a gain of over 13% in the 15 months it was in existence–given the conservative nature of the portfolio 13% is really great (note that the S&P500 was up 11.89% and general bonds were up 4.70% during this time).  The key was being in some REITs at the right time and NOT being in MLP’s at the wrong time.  We have come to believe that being in the right sector may be as important as the selection of individual issues.  Almost all REITs moved much higher in the last years—you didn’t have to be a rocket scientist to make money in REITs–rising tide lifts all boats. On the other hand being out of MLP’s–in particular the upstream issues saved a years worth of profits.

Additionally looking at the 2014 portfolio it was purely accidental that the Tortoise Energy Infrastructure 4.37% preferred (TYG-B) moved up by 20% (plus dividends) and it was our largest position. A ‘AA’ issue screaming higher–damn we wish that would happen every year. On the other hand we carried a Short S&P500 position for a good portion of 2014 and again this was a loser (we have never had a hedge that was either necessary or successful).

So we are now done with this portfolio–but it will remain in the menu.