Sunday, July 21, 2013

Mid Year Performance

I  guess it’s time to review my mid-year performance. So far I’ve been pleased with the performance as my portfolio has generated a return of 19.29% from January to June. July is looking promising with a return of +2.96% as of July 20th. Here are my returns on a monthly basis:

January -0.30%
February +4.67%
March +5.03%
April +5.13%
May +5.13%
June -0.37%

This year, I’ve been more disciplined in terms of cutting my losses when a trade does not work out. For example, I recently sold out my position in MoneyGram International generating a net loss of 11.13%. Like I mentioned before, once a position hits a 10% loss I will start to sell out a position. One can always re-enter a position, but you don’t want to let a losing position get away from you. I've also been more careful with position sizing to minimize potential blow ups that can vaporize ones gains.

I may write about my merger arb / special situation trades, but I do buy and hold companies for the long term such as VISA Inc., which I purchased in the IPO and plan on keeping it for a long long time.

My largest position is currently Constellation Brands, which I entered as a special situations play when it acquired assets from Anheuser Bush InBev in its acquisition of Grupo Modelo S.A.B. As I learned more about the biz and the potential earnings power, I gained a strong conviction and plan on hanging onto Constellation Brands for at least the next few years. Looking out 3 years, this company has the ability to generate ~ $1 billion in annual free cash flow. For a company of this size, this is serious cash generation.

I guess that's it for now. Hopefully, the second half of the year will produce decent returns so we’ll see…


At July 28, 2013, Anonymous Anonymous said...

What do you think of new IPO Prosensa? Seems very interesting with phase 3 on DMD?

At July 28, 2013, Blogger Money Turtle said...

It is interesting... They're obviously competing with Sarepta to see who gets to market first. Sarepta appears to have a better safety profile, but it is with a smaller patient population so it's a bit hard to really say if one or the other is better / safer. I have a tiny position in Sarepta, but haven't taken a close look at Prosena. I think both will eventually receive approval for DMD.

At July 30, 2013, Anonymous T Bhat said...

check out sprd arb - it is interesting.

At July 30, 2013, Blogger Money Turtle said...

I was going to write about SPRD. I accumulated a decent position yesterday.


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