Bits and Pieces

I received a letter from our HR regarding our new 401K plan administrator. They will change to Fidelity from ADP. This is a wonderful news as ADP's plan has really limited options and I can find only two funds that is compatible with my overall portfolio. So I am quite happy with the news. But it also means that I won't be able to make any changes from Dec to Feb while it is in transition. So I plan to change my payroll 401k deduction percentage before Dec and leave it at that. Hopefully I will get more fund choices to choose from. Hey, they may even let me trade stocks! (One can hope, right?:))

At times like this in the stock market, I am really glad to have more than 20% of my portfolio in cash, it acts as a strong buffer. I feel better prepared for any outcome than in Aug, with more bonds, cash and long-short mutual fund positions. It is time to get more defensive.

I sold off TAVFX (Third Avenue Value) today. According to Morningstar X-ray, I have a tad more in financials than S&P 500, and I don't want that, I should underweight financials. Since TAVFX has more than 50% of its stocks in financial sector, I need to sell it and return to underweight financial sector position. Besides, this fund has not been performing up to my standard, only returns about 12% since I bought it a year ago. It is a five star fund in Morningstar, but honestly, I don't always go by that rating system, if it is not performing as I have hoped and I have a valid reason to sell, I will go for it regardless of five star rating or not.

And I also sold off Lehman Brothers in the DRIP account. This move is also made to reduce my financial holdings and get rid of a under performing trade. Since I didn't start this DRIP until beginning of this year, the position is not big and I am only out $150. I am quite ruthless in trimming unprofitable positions if I think it no long helps the portfolio and the original reason for purchasing it is no long working. When financials eventually start to show some sign of revival, I will be the first to jump back in since financial would be the first to recover in a new bull market.