In the second quarter of 2008, broad stock market averages were down as investors struggled with high energy and food prices, a meltdown in real estate, and declining corporate profits. As a result, most broad measures of the stock market showed a decline during the quarter. However, higher oil prices also focused attention on the need for alternatives and investors targeted the segments of alternative energy most likely to play a major role in solving this problem.
While the shotgun approach to alternative energy investing produced a flat quarter, a more selective approach was again rewarded. Investors know that some segments of alternative energy will never become economically viable while others will change how we live by offering a cheaper and cleaner solution than fossil fuels. These technologies are the focus of the Odyssey Clean Energy Portfolio.
The Track Record
Investors know that quarterly returns can fluctuate and a longer performance record is more important. From this perspective, the Odyssey Clean Energy Portfolio is establishing a track record that has few rivals. It was one of the first portfolios to be invested entirely in clean energy stocks traded on the major exchanges and was opened to investors on 12/31/05.
From inception, early investors in this portfolio have more than doubled their money while a broad stock market index such as the S&P 500 produced a compound return of just under 3% during the same period. As you can see from the above, the Odyssey Clean Energy Portfolio has also dramatically outperformed its benchmark. It was the top performing equity portfolio in 2007 in the eVestment Alliance database, which was the largest database of investment advisors in the U.S at the time.
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