Another year has come and gone for the stock market. This year's Gad Winning Value Portfolio failed to best the S&P 500 for the first time since it was created in 2012.
For 2014, the Winning Value Portfolio was up approximately 7.3%, compared with a positive 13.6 % for the S&P 500 assuming reinvested dividends. Last month, I stated that it was very likely that the portfolio will underperform the S&P 500 in 2014.
Despite the underperformance, the Winning Value Portfolio succeeded in doing its ultimate job -- preservation of capital.
Even though I design these portfolios for a one-year duration, an investment track record is earned over a period of years. Since launching this portfolio in 2012, we have accomplished precisely that. Long-time Real Money readers who have followed our progress are aware of this. Still, below are the returns for the 2012 and 2013 portfolios:
My quick calculation of annualized returns shows an approximate 25% annualized rate of return for the Gad Portfolio vs. 17% for the S&P 500 over the last three years, respectively.
Last week, I unveiled the class of 2015, and in the coming days and weeks, I will dig deeper into this group.