All major US indices ended April on a positive note. The NASDAQ Composite posted a gain of 12.35%, followed by the S&P 500 with a jump of 9.39%, and the Dow marked an increase of 7.35%. Companies with small market capitalizations, measured by the Russell 2000, posted the biggest gains this month among all major indices, with a gain of 15.33%. S&P had its best April % gain since 1938 when it gained 15.06%, and its best monthly % gain since 3/2000 when it rose 9.67%. Nine out of ten sectors in the S&P 500 finished in positive territory this month. The gains were led by financials, with an increase of 22.17%. Consumer Discretionary and Industrial companies also joined the rally, posting increases north of 17%.
ValueHuntr Portfolio Results
The ValueHuntr Portfolio posted gains of 17.15% for the month of April, compared to a 9.39% gain for the S&P500, which had its best month since 2001. Our portfolio also outperformed the Russell 2000, the top index for the month of April, by nearly 200 bps. Six of our nine holdings had positive gains for April, led by Alliance Semiconductor (ALSC) and General Electric (GE), which had gains of 111% and 27% for the month, respectively.
Since inception, the ValueHuntr Portfolio has gained an absolute return of 59.6% vs. an absolute return of 18.73% for the S&P500 during the same period.
Though flattering, these gains are not what we would expect under normal market conditions. In a sense, we were lucky to have started the portfolio when the general market was at a distressed level. We are also 100% net long, so our return was not affected by any possible short positions.