Update 8/16/11: Adib Motiwala no longer manages a Covestor model
Author: Adib Motiwala
Covestor model: Dividend Value Plus
Disclosure: Long PFE, CLMS
June 2011 was a tough month for the Dividend Value Plus model, as it was for the U.S. equities market. The model decreased by 4.9%, compared to a decrease of 1.8% of S&P 500.
Trades
In June, I closed two positions, both for gains. I sold Pfizer (NYSE: PFE) after shares appreciated significantly over the last 6 months. I also closed my position in Allianz SE (PINK: AZSEY) following share price gains since my November, 2010 purchase.
The model added a new position in Calamos Asset Management (NASDAQ: CLMS). Assets under management (AUM) at Calamos have recovered strongly since the 2007 decline. CLMS produces excellent free cash flow and has excess cash on its balance sheet. As of 7/12/11, CLMS has a dividend yield of 2.6% and shares are trading at a P/E of approximately 15. I expect profitability and cash flows to continue to increase at CLMS.
We received cash for two closed end fund tender offers from last month.
Sources:
Price information from Yahoo Finance, http://finance.yahoo.com
