eResearch | It was a tough week for the Energy Sector. Our Model Oil Portfolio fell 3.3% and is now down 3.4% since 2020 began. Likewise, most of the benchmarks we use are off significantly so far this year. The Middle East tensions are a large part of the volatility that has been experienced to date in 2020.
Portfolio 2020 Performance
At the beginning of 2020 the Model Oil Portfolio stood at $326,659. It has dropped over $10,000 since then and is off 3.4% since the year began. Last week’s close was $316,409.
Portfolio Comparison
For comparison, the S&P/TSX Energy Index is down 4.7% and the price of crude oil is off 4.6%. You can check our overall performance in the tables and graphs set out in our comprehensive report that has a link to it at the end of this article.
Winners and Losers
Of the 10 stocks in the Portfolio, there are 3 that are “under water”. Conversely, many of the stocks are above their respective Target Prices. We will monitor these and revise where appropriate.
Our best-performing stocks since inception are Crescent Point Energy (up 27.7%) and Whitecap Resources (up 23.6%).
Our 3 laggards are Vermilion Energy (down 18.7%), Baytex Energy (down 8.4%), and Tourmaline Energy (down 6.7%).
Cash Position
Cash continues to be a sizable proportion of the Portfolio. We will look for opportunities to utilize some of that cash hoard because there are a few of the holdings, notably Cenovus Energy, whose cost basis is well below the others. Also, we can always add new names to the Portfolio since it is not confined to 10 stocks. However, the maximum single holding on a cost basis cannot exceed $30,000.
GRAPHIC COMPARISONS
As at January 17:
Portfolio = +5.5% after dividends and trading losses; +7.2% (stocks only)
S&P/TSX Energy Index = -2.9%
S&P/TSX Composite = +9.4%
As at January 17, 2020:
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