We’ve held a fairly static portfolio for the past few months, but are now repositioning in several sectors. We made after-market trades last evening. Note that ACCRE premium subscribers have access to these trades, the reason for the trades, and the current portfolio position.
It was another solid month for ACCRE, up a solid 2.23%. We outperformed REITs in general (up 1.63%) by a tidy margin. The S&P did much better (up 6.89% for the month), but then again, it had to catch up from a dismal May (when it was down 6.58%). All in all, a dollar invested in ACCRE since the inception would be worth $1.54 today, compared to $1.25 if invested in the S&P.
The Sharpe Ratio continues to be stellar. As readers will recall, this is the ratio of the fund’s excess returns (average daily return minus the return on the 13-week T-Bill) divided by the standard deviation of those excess returns. A higher Sharpe Ratio says we’re getting more return for the risk we take (volatility). As of the end of June, our cumulative Sharpe ratio was 6.2%, compared to 2.9% for the S&P. This means that on a risk-adjusted basis, ACCRE is providing over twice the return as the S&P. Of course, this is apparent from the raw data as well.
By the way, the cumulative correlation between ACCRE and the S&P is 42.4% (slightly down from May), which reminds us that ACCRE does a great job of providing diversification in a market portfolio.