Posted by alexg

I am proud to report the Garcia Value Fund has excelled in a volatile market. For the trailing month, the Garcia Value Fund had a return of 3.63%.On the other hand,the S&P 500 Index had a loss of 6%, thus resulting in the fund outperforming the index by 9.63%.

The recent strong performance of financials is a major reason for the fund having such a strong month. For the past 2 weeks, financials have had a strong performance (look at arrow) with companies such as Wells Fargo up nearly 40%.

Another strong performer is E-Trade Financial, a stock I should have never put money into. The stocks’ recent performance is due to a) the companies’ plans to focus on its retail business and b) insider buying giving investors confidence on the future of the company. At one point the stock was down over 50% on rumors of bankruptcy. The stock is now up 150% off its 52 week low of $2.08. E-Trade should see more upside as it returns to its core business and returns to profitability.I guess sometimes it pays to be lucky and not good.Shame on you Citigroup Analyst Prashant Bhatia. Below is a quote by Peter Lynch which I feel is relevant to E-Trade Financial’s stock performance. You just cannot time the market.

When stocks are attractive, you buy them. Sure, they can go lower. I’ve bought stocks at $12 that went to $2, but then they later went to $30. You just don’t know when you can find the bottom.- Peter Lynch

If you enjoyed this post, make sure you subscribe to my RSS feed!