This week, Amin Khakiani added ProShares Short Real Estate (REK) to his Quantitative Hedging model. In the model, Khakiani mixes long and short-term holdings and invests in many different sectors. REK attempts to provide results that are the inverse of the Dow Jones U.S. Real Estate index. This is the second time in the month of September that Khakiani has added additional shares of REK to the model (we discussed the position here). As of September 21st, 2010, REK was trading at a premium to NAV.
In his Opportunistic ETF model, manager Gary Harloff invests in ETFs across sectors according to market conditions. The model is opportunistic and long only. This week Harloff added Telecomunicacoes Brasileiras SA TELEBRAS (NYSE: TBH) to the model. TBH is a Brazilian telecommunications company. As of the date of this post (September 21st, 2010) TBH had a 9.7 percent dividend yield. The company’s total assets in 2009 totaled $248.4 million, which was a great increase over their 2008 assets of $184.8 million. Their liabilities increased from $183.1 million in 2008 to $257.8 million in 2009 leaving their shareholder equity at -$9.3 million. Their outstanding shares decreased in 2009 to 210 million from the 250.4 million they reported in 2008. Their quarter two 2010 results show slightly declining total assets of $243.9 million along with slightly increasing total liabilities of $258.7 million. Outstanding shares remain the same while stockholder equity has dropped to -$14.8 million.
