January 2016 Performance
Let’s just say that I’m glad January has come and gone… I entered January fairly cautious so my downside was limited. The only real significant arb plays I put on were Dyax and Solarwinds (Ticker: SWI). As you know Dyax just closed and Solarwinds should be completing their merger any day now. I believe I lucked out a bit with Solarwinds as they were able to market their loan just as the junk window closed. I’m staying away from any merger plays associated with private equity at this point. I view the risk is high with a potential private equity deal breaking due to financing failure.
The only long position that is surviving this market decline is Constellation Brands (Ticker: STZ). The strength of this stock really amazes me. I can see this one take off to the races once the market settles down a bit. As I mentioned many times before, I’m going to hold Constellation Brands for a long long time…
Hoping February will be a nicer month…
2016 Performance Year to Date = -5.47% with the running monthly returns as follows:
January -5.47%
posted by Money Turtle @ 10:28 PM
4 comments
4 Comments:
What is the potential deal breaking?
It was just a general statement. I have no knowledge of any particular deal breaking. The pricing of junk paper is worrisome. The banks just priced the SWI junk with a big discount. There's just no sign of any improvement for junk...
$ALR seems a good bet in this environment. All cash deal, think closes early
I have a small position in $ALR via short Puts. I agree it's a relatively safe deal, but I think it's going to take awhile to close. Possibly looking at a second request…
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