QG Fund Update: Cautiously Optimistic?

Photo Credit: Vlastula via Compfight cc
Photo Credit: Vlastula via Compfight cc
Photo Credit: Vlastula via Compfight cc

The performance of the DTAYS Quantitative Growth Fund continues to lag the general market. While it isn’t producing great bottom line numbers just yet, it has certainly found some tremendous stocks like THRM, which is up moret han 46% since the fund bought. I am growing more an more curious how today’s version of the fund would have performed in January and if that explains the difference between the fund and the S&P 500 on the year.

Despite my personal concerns about the stability of this market, the QG Fund continues to get more long each and every weekend. This weekend it will be adding one more stock that is an old friend that has been on the IBD 50 for what seems like forever.

Overall Performance

The QG Fund is currently sitting at a value of $98,112.88, which represents a loss of 1.89% on the year. This marks a slight loss on the week as the fund was only down 1.74% last weekend. That also means that the fund has now fallen even further behind the S&P 500, which had another solid week and is now up 5% on the year.

I am still not concerned about the performance of the QG Fund this year, but it sure would be a lot more fun to trade if it was up 10% on the year. Here is what the individual holdings look like this week:

qgholdings-053114

Entries & Exits

As you can see, the new stock in the fund had the most trouble this week. AFSI got off to a slow start and then lost some ground as the week progressed. We also got a scare from AGN this week, but it was able to bounce back on Friday and didn’t really come all that close to triggering an exit. Aside from those two stocks, everything else was just kind of “blah” this week, so there were no exits signaled.

Because the SPY is still trading above it’s 100-day moving average, I ran the QG Scan on this weekend’s IBD 50. Here are the stocks that are at new 20-week highs:

qgscan-053114

This list seems to be getting bigger and bigger in recent weeks. Sorting by 20-week ROC, we see that the top four are the only relevant symbols, and the top two are already held by the QG Fund. That leaves us with ARRS and CLR, but ARRS just barely misses the fund’s Historical Volatility cutoff.

That means that CLR is the only new entry for the QG Fund this weekend. The fund currently holds 7.5 full positions, which leaves 2.5 open positions to share the $22,984.58 in available cash, so our new position should be approximately $9193 and the order will be entered to buy on Monday’s open.

The order is placed, and that is the end of the weekend QG Fund routine. If nothing else, it’s a pretty simple operation.