YMBC 2 Year Review - A Crazy High Yield Portfolio

The YMBC (You Must Be Crazy) High Yield Portfolio utilizes primarily UBS leveraged 2x ETNs in order to formulate an easily managed, very high yield portfolio. Many would consider the utilization of such a portfolio foolish, particularly in the face of increasing interest rates. As you will soon see, at least for the 2015 calendar year, they would be right. A one year 2014 review article, including a more thorough explanation of the goals, characteristics, and a risk analysis of the portfolio is available here.
For this update it is assumed the reader has already read that article and thus is familiar with the goals, characteristics and the inherent risk involved.
As of the beginning of 2015 the YMBC portfolio stood as follows:
30% BDCL (overweight due to my call that it is cheap)
21% MORL
17% DVHL
15% SDYL
17% EFF
0% CEFL, MLPL, LMLP, SMHD
0% Cash
Indicated Forward Yield: 14.2%
Changes:
In Q1 2015 all distributions were re-invested in SMHD, a new 2x leveraged UBS small cap, high dividend ETN which caught my eye. For more on my reasoning why please see the Q1 2015 portfolio review.
In Q2 I did the same, re-investing all distributions in SMHD. This has not been a good choice, particularly since small caps have been getting disproportionately hit all year.
In Q3 distributions were re-invested in Blue Capital Reinsurance Holdings (NYSE: BCRH), a company which provides catastrophe re-insurance against hurricanes, earthquakes and other... Read more