We added 25% more to our holdings of Central Europe and Russia Fund (CEE), a non-diversified closed-end exchange traded fund (ETF) managed by Deutsche Bank Group. The fund aims to follow a blended benchmark index comprising of Composite Eastern European Index (CECE) – 45%, Russian Traded Stock Index (RTX) – 45%, and the Istanbul Stock Exchange National – 10 (ISE-30). The fund is very volatile and is down 30% from the beginning of the year although it experienced an interim peak in mid-May. Also, the discount to NAV has widened recently to a range of 15% about 5% above the average in the last few years. The fund has followed the prospects of the Russian Stock Index – the fund is close to 60% invested in Russian stocks, a divergence from their published benchmark index. Russian stock market has been in an extended slump due to the double-whammy of lower energy prices and an exodus of foreign investors due to rising tensions with the west and the re-nationalization of the energy sector. Despite all this, the valuation is compelling.
Below is our updated portfolio:
| Stock | Buy Date | Buy Price | Current Price | Current % Of Portfolio | Unrealized % Return | Yield as % of BOY Portfolio Value Plus Deposits |
| Altria (MO) | Various | 16.69 | 21.03 | 3.29 | 26.04 | 0.15 |
| Philip Morris International (PM) | 1/4/2005 | 32.19 | 53.7 | 5.59 | 66.81 | 0.18 |
| Kraft Foods (KFT) | Various | 24.03 | 31.51 | 3.29 | 31.10 | 0.11 |
| Plum Creek Timber (PCL) | 5/12/2005 | 35.5 | 49.62 | 7.76 | 39.76 | 0.28 |
| Pfizer (PFE) | Various | 24.37 | 19.11 | 4.98 | (21.58) | 0.28 |
| ICICI Bank (IBN) | 5/18/2006 and 08/01/2008 | 28.30 | 31.02 | 6.47 | 9.59 | 0.06 |
| Taiwan Semi (TSM) | 7/27/2006 | 8.71 | 9.80 | 5.11 | 12.64 | 0.15 |
| Advantage Energy Fund (AAV) | 11/2/2006 | 11.22 | 11.33 | 3.84 | 0.93 | 0.39 |
| SunTech Power (STP) | 3/14/2007 | 36.73 | 47.81 | 4.99 | 30.18 | None |
| Central Europe & Russia Fund (CEE) | Various | 48.98 | 41.14 | 5.36 | (16.01) | 0.93 |
| Patni Computers (PTI) | 8/10/2007 | 20.85 | 10.85 | 2.83 | (48.00) | 0.03 |
| Itron Inc. (ITRI) | 11/07/2007 | 85.01 | 103.58 | 5.40 | 21.70 | None |
| Anthracite (AHR) | 11/09/2007 | 7.97 | 5.63 | 2.94 | (29.36) | 0.51 |
| ClickSoftware (CKSW) | 11/09/2007 | 4.61 | 2.44 | 1.27 | (47.07) | None |
| Harvest Energy (HTE) | 11/28/2007 | 21.01 | 20.30 | 4.23 | (3.40) | 0.59 |
| iRobot (IRBT) | 12/18/2007 | 18.65 | 13.99 | 2.92 | (24.34) | None |
| MCG Capital (MCGC) | Various | 10.86 | 3.48 | 1.45 | (67.96) | 0.32 |
| LDK Solar (LDK) | 01/22/2008 | 30.49 | 51.26 | 8.02 | 68.10 | None |
| Aegon N.V. (AEG) | 04/28/2008 | 15.99 | 11.79 | 3.69 | (26.25) | 0.20 |
| LM Ericsson (ERIC) (AEG) | 05/05/2008 | 11.83 | 10.59 | 4.76 | (3.44) | 0.14 |
| TD Ameritrade (AMTD) | 05/21/2008 | 17.68 | 20.43 | 4.26 | 15.52 | None |
| Trina Solar (TSL) | 06/06/2008 and 07/31/2008 | 45.61 | 32.70 | 4.26 | (22.36) | None |
| Costco (COST) | 08/01/2008 | 62.28 | 67.06 | 3.50 | 7.68 | 0.03 |
| Cash | (0.21) | |||||
| Total Portfolio | (0.95) | 4.36 |
- For SunTech Power (STP), we wrote covered calls for 2008 Dec 50 on 06/06/2008 at $5.20.
- For Taiwan Semi (TSM), we wrote covered calls for 2008 October 12.5 on 4/21/2008 at $0.45.
- For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
- For Plum Creek Timber (PCL), we wrote covered calls for 2008 November 50 on 06/03/2008 at $1.70.
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