For those wondering where our monthly reports went to they are gone. We have decided why spend time doing those when quarterly will do and besides we prefer time ON the beach as opposed to time AT the beach doing reports.
So with that noted we finished the third quarter with a 7.39% annualized yield. Our year to date performance has been not very good in our opinion and it is mainly due to the losses we have booked from bad investment decisions this year. By far the largest mistake was our early year loss in ERF with amounts to about half of all of losses for 2012. GG was our second largest, but only about 20% of the ERF loss. We have also included in the third quarter report a pending loss in LO, which unless there is a huge move we will take a year end. We currently see no other security where we have a loss to take.
Our trading fees this year are well within our desired parameter and margin costs have been contained nicely.
Option premiums are producing expected cash flow and dividends are double margin costs which meet expectations as well. The key to doing any hedge activity is to keep losses to a minimum and premium cash flow maxed. This year only one part of that has been on track.
With three months to go we still have the possibility of a double digit percentage gain for the year. We frankly will be glad when the election is settled and there is some degree of certainly as to tax policy for the next year.
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