Commentary Archive 2005

Commentary Archive 2005 background

Commentary Archive 2005

Disclosure

Performance results are based on estimates. Although the information contained in the commentary sections have been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. Past performance is not necessarily indicative of future results. Different types of investments involve varying degrees of risk.

December 2005 Summary

Hanseatic’s Large Cap product gained 1.96% in the month of December outperforming the Russell 1000 Growth Index by 2.27% and outperforming the S&P 500 Total Return by 1.93%.

Quarter to Date

The Large Cap product leads the Russell benchmark by 0.51% trails the S&P 500 Total Return by 0.12%.

Year to Date

The Large Cap product leads the Russell benchmark by 7.97% and the S&P 500 Total Return by 8.32%.

November 2005 Summary

Hanseatic’s Large Cap product gained 4.62% in the month of November outperforming the Russell 1000 Growth Index by 0.31% and outperforming the S&P 500 Total Return by 0.84%.

Year to Date

The Large Cap product leads the Russell benchmark by 5.3% and the S&P 500 Total Return by 6.01%.

The US has an incredibly resilient economy. Despite soaring energy prices, hurricanes and auto industry woes, real GDP growth during the third quarter was revised up to 4.3% with upward revisions in both consumer and business spending. Technology, selected healthcare and retailers bounced back vigorously from their October corrections. We remain moderately bullish about the US stock market.

October 2005 Summary

Hanseatic’s Large Cap product lost 3.14% in the month of October underperforming the S&P500 Total Return Index by 1.47%.

Year to Date

The Large Cap product leads the benchmark by 4.92%.

It was a typically hyper October for the stock market as the lingering effects of the hurricanes worked themselves through the energy markets. Energy stocks reversed sharply and were accompanied by declines in utility, semiconductor and biotech stocks. Looking forward, there is no shortage of macro-economic and other concerns; the good news is that they have likely been discounted. We remain moderately bullish about the domestic equity markets.

September 2005 Summary

Hanseatic’s Large Cap product gained 3.34% in the month of September outperforming the S&P500 Total Return Index by 2.53%.

In the third Quarter, the Large Cap product led the benchmark by 4.16%.

Year to Date

The Large Cap product leads the benchmark by 6.59%.

August 2005 Summary

Hanseatic’s Large Cap product gained .23% outperforming the S&P500 Total Return Index by 1.14% in the month of August.

Year to Date

The Large Cap product leads the benchmark by 3.90%.

August was a difficult month for the US Equity markets with the notable exception of energy. Eight of the 10 major S&P industry sectors fell during the month with the financial, consumer discretionary, pharmaceutical and materials sectors leading the way on the downside. Aside from the positive energy sector, utilities were up slightly as was healthcare outside the large-cap drug stocks.

July 2005 Summary

Hanseatic’s Large Cap product gained 3.84% outperforming the S&P500 Total Return Index by 0.12% in the month of July.

Year to Date

The Large Cap product leads the benchmark by 2.43%.

Equity markets were quite robust in June, belying the old Wall Street adage “sell in May and go away”. The earnings season, reported results as well as guidance, was quite strong and the economy seems to be picking up at a steady pace. The small and mid-cap indices were particularly strong.

The bearish contingent have a host of macro economic concerns, notably rising interest rates and a steadfastly hawkish Fed, but also valuations, China, the Dollar, etc...we’ll see.

June 2005 Summary

Hanseatic’s Large Cap product gained 2.00% outperforming the S&P500 Total Return Index by 1.86% in the month of June.

For the year the Large Cap product bests the S&P500 Total Return Index by 2.29%.

Uncertainty about the Fed and the impact of higher energy prices dominated the equity markets in June. The Dow and S&P 500 indices were flat to down for the month while smaller capitalization benchmarks such as the Russell indices performed relatively well. Real estate-related themes, biotech, selected healthcare and utilities performed particularly well, while commodity and basic material stocks fared poorly over the month.

May 2005 Summary

Hanseatic’s Large Cap product gained 4.57% outperforming the S&P500 Total Return Index by 1.39% in the month of May.

For the year the Large Cap product bests the S&P500 Total Return Index by 0.34%.

The month of May was notable for the robust rally in all of the indices, but particularly the small to mid-cap growth stocks indices. The spring rally in the technology stocks in general, and semiconductor and computer networking stocks specifically, were robust. Biotech and selected healthcare stocks also performed well. The sea change in sentiment is likely linked to several factors, including a better-than-expected earnings season and the markets’ discounting the beginning of the end of the Fed’s agenda of rate increases.

April 2005 Summary

Hanseatic’s Large Cap product underperformed the S&P500 Total Return Index by 1.72% in the month of April.