My Tax Loss Selling Recovery Portfolio Is Impressive So Far

But we're still in the early innings.
Stocks quotes in this article: DBI, PPC, XRX, WBA, FLMN, GCO, WFC, TSQ, SBH, GIII, AER, GE, PSXP

One third of the way there, this year's Tax Loss Selling Recovery Portfolio continues to put up rather impressive numbers. Up nearly 47%, since the early December rollout in three tranches, I'd be extremely satisfied with those results over an entire year. That said, I take these early results with a grain of salt.

Tranche 1, released on 12/1 had another solid month, and is now up 39%. It is outperforming both the S&P 500 (up 4.33%) and Russell 2000 (up 21.4%). Designer Brands (DBI) (up 80% since inception) is now trading above pre-Covid levels, and remains the second-best overall performer in the portfolio. Pilgrim's Pride (PPC) (up 28%) and Xerox (XRX) (up 22%) both had solid months taking them out of single-digit positive performance territory. Walgreens Boots Alliance (WBA) (up 27%) is holding its own, but was relatively flat for the month.

Tranche 2, released on 12/4 (up 67%) is leading the way, and outperforming the S&P 500 (up 4.2%) and Russell 2000 (up 20.2%). Falcon Minerals (FLMN) (up 121%) padded its lead as the best overall performer in all tranches, rising 38% over the past month. The company raised its quarterly dividend 15% to 7.5 cents on February 11th, and now yields 6.1%. Genesco (GCO) (+64%) continued to benefit from the rising tide in retail, jumping 17% for the month. Wells Fargo (WFC) (+33%) joined the party, rising 19% for the month. Townsquare Media (TSQ) (up 49%) was flat.

Tranche 3, released on 12/7 (up 35%) is beating the S&P 500 (up 3.3%) and Russell 2000 (up 19.5%) following a 25% jump since early February. Sally Beauty Holdings (SBH) (up 64%) rose 38% for the month. G-III Apparel (GIII) (up 30%) continued to benefit from a surging retail sector. AerCap Holdings (AER) (up 33%) jumped into positive territory in-part due to news that General Electric (GE) may merge its aircraft leasing business with AER. Shares rose 13% Monday on that news. Phillips 66 Partners (PSXP) (up 12%), while the worst overall performer, rose 24% for the month into positive territory on speculation that it might be taken private.

Can't say that I am disappointed with performance of these names, which all suffered in 2020, but it's still the early innings.

(Wells Fargo is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells WFC? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Jonathan Heller was Long WBA, DBI, XRX, PPC, FLMN, WFC, TSQ, GCO, SBH, AER, PSXP, GIII.

TAGS: Investing | Markets | Stocks | Trading

More from Investing

It's Far Too Early for a Victory Lap in the Race Against Inflation

Bret Jensen

Prices are continuing to rise, particularly for labor and rent, and that could put a drag on profits and consumer spending.

Fossil Group Sounds the Alarm While NL Industries Rewards Its Shareholders

Jonathan Heller

The former signaled lower revenues for the year while the latter declared a healthy special dividend.

The TJX Companies Reports Next Week, But There's a Trade Here

Stephen Guilfoyle

Many large chain retailers report during the week to round out earnings season, along with the July Retail Sales.

Major Indexes Keep Uptrends Intact After Mixed Thursday

Guy Ortmann

However, we are becoming more reticent about chasing price at current levels given some of the data and valuation issues.

Could China Be Our Next Move?

Bruce Kamich

Here's what I see with the iShares China Large-Cap ETF.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight