This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

We've Added Two New ETFs To The Macro Plus Income Portfolio

By CJ Brott

Recently we added two more ETFs to the portfolio. They were selected in order to add certain missing attributes to the existing portfolio. Those qualities are described below:

Barron's 400 ETF (BFOR)

This relatively new ETF selects its portfolio using the Barron's 400 Index as is guide. The components in the index are selected using a growth at reasonable price criterion combined with elements of momentum and market sentiment. The long term record has been strong.

iShares Core S&P Small-Cap ETF (IJR)

The Covestor Macro Plus Income portfolio lacked diversification in the small cap area. In order to gain better representation in the lower end of the S&P 1500 universe, we added IJR. We recognize small cap performance has been exceptional and the fund is probably due for a correction. Therefore we added one half of the desired position and will add the other one half if such a pullback occurs.

In addition to our ETF additions, we want to comment on one of our income holdings. Short interest in Linn Co. LLC (NASDAQ: LNCO) has been increasing dramatically.

In my opinion, this attack is without merit and the 10% yield and potential price recovery should provide a better-than-average return to the income portion of the portfolio.

Most of our bullish case rests on the outcome of a proposed merger between a former holding Berry Petroleum (NYSE: (BRY) and Linn Co. I have no way of knowing this for sure, but as of the time of this writing, the SEC seems to have cleared the way for that merger and I await the outcome of a soon to be scheduled conference call dealing with this matter.

As with most of my speculative holdings I have limited the size to 5% or less of the portfolio. However, in my opinion, even with this limited exposure, a successful outcome would imply price improvement large enough to have meaningful impact on the portfolio.

The investments discussed are held in client accounts as of October 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.

CJ Brott

CJ Brott

We are a registered investment adviser firm based in Texas. CJ Brott founded our firm in 1984. Since 1980 he

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs