Tuesday, July 05, 2016

June 2016 Performance

June was a strange month as you were near new highs and then Brexit hit the market. The positive for the month was the closing of the Nanosphere acquisition by Luminex. I guess there was one other positive…  the nice earnings report from Constellation Brands, which I continue to hang on for the long term. Those two pretty much sums up the positives for the month.

M&A continues to be challenging as I wait for several deals to close. I have built up a position in Qihoo 360 (Ticker: QIHU) and based on the guidance by the company, this deal should close by mid-August. I like the odds of this deal closing, but it is a China acquisition so there’s going to be some doubt.

I’m also involved in the Medivation (Ticker: MDVN) special situation play. I initially entered this position based on the hostility by Sanofi (Ticker: SNY), but as I learn more about this company I actually like it as a standalone basis. I wouldn’t mind if Sanofi walked as I agree with the company that there is significant value creation ahead by expanding the indication of Xtandi and its potential pipeline. So it’ll be interesting to see how this plays out.

That’s it for June…

2016 Performance Year to Date = +2.43% with the running monthly returns as follows:

January -5.47%
February -3.50%
March +7.51%
April +0.84%
May +6.34%
June -2.6%

9 Comments:

At July 05, 2016, Anonymous Anonymous said...

Hi,
got back in MDVN today after the news about bidding war. I think 70+ seems to get the deal done.

 
At July 06, 2016, Anonymous Anonymous said...

You think MDVN takes 6 months to be bought?

 
At July 06, 2016, Blogger Money Turtle said...

Possible, could take up to 6 months...

 
At July 07, 2016, Anonymous Anonymous said...

what is this pressure on QIHU? damn.. each few weeks something like this... with mid august close announcement...

 
At July 07, 2016, Blogger Money Turtle said...

QIHU - Typical volatility with a China play. Just need to stomach this for a few more weeks.

 
At July 07, 2016, Anonymous Anonymous said...

ok :)

 
At July 14, 2016, Blogger DCFrancis said...

something of interest. CVT is being acquired at $36. The shareholders just approved according to the 8K filing. So it should close soon.

https://www.sec.gov/Archives/edgar/data/1122897/000112289716000038/form8-kspecialmeetingvotin.htm

 
At July 21, 2016, Anonymous Anonymous said...

DCFrancis,

What are the largest risks that cause the spread in your opinion?

 
At July 21, 2016, Anonymous JG said...

I guess this is the reason for the increased spread:

http://www.businesstravelnews.com/Meetings/DOJ-Intitiates-Deeper-Dive-on-Cvent-Vista-Merger

 

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