As we had mentioned April results were right on target with another excellent cash flow month. The final result for the month was a 17.26% annualized yield on assets. ERF, GG, LO, and BCE produced good income for the month. Margin interest costs were up, but again below normal. Trading costs came in once again significantly down from last year. Dividend income far outstripped margin costs by 8 to 1 margin. We consider a 1 to 1 margin acceptable. We traded 9 positions this month, and have 10 open for next month.
Year to date now includes net losses, pending losses, and any stock we are down in the money on in the portfolio. By far the biggest adjustment to the fund is the pending loss in ERF which cuts into our annualized yield by double digit points. We are also down in the money on GG, but currently do not consider that a worry. However it also is included in the year to date annualized yield of 8.7%.
Looking forward we continue to believe 2012 will be a good year since we are only three months into the year and trading income continues to be as we expected earlier. Best guess would be a 15% gain for 2012 including all net losses and expenses. Long term options are still a possibility and we are as of this writing looking to pull the trigger on one in our sights which could impact May results a good bit.
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