Unit share price on June 30 was $13.14 up only slightly from the $13.09 at the beginning of the year. The IRR was 0.7%. In comparison, the S&P 500 was up 1.76% for the same six month period. (Actual gain for the S&P will be slightly higher with dividends.)
Top five advancers for the first half of 2006 were: Occidental Petroleum, OXY (+29.4%), Investors Financial, IFIN (+20.2%), FactSet Research Systems, FDS (+15.2%), Chevron, CVX (11.1%), and Maxim Integrated products, MXIM (+5.0%). The five biggest decliners for the same period were: INTC (-20.2%), Amgen, AMGN (-17.6), Affiliated Computer Systems, ACS (-13.8), Marsh & McLennan Companies, MMC (-14.4), and Stryker, SYK (-8.0%).
With the possible exception of MMC, the fundamentals of the decliners remain intact and don’t warrant sale of these stocks. The wide range reflected by the return of the top and bottom stocks for 2006 underscores the importance of diversification and adding regularly to the portfolio.