Sunday, December 03, 2017

November 2017 Performance

November was cruel as my portfolio was up nicely for a good part of the month and then a sell off right at the very end. The November results does not reflect the blow up in Axalta Coating Systems (Ticker: AXTA), which was close to being acquired by Nippon Paint. Nippon Paint couldn’t bump their price and walked away from the deal. This blow up will be reflected in the December results (~ 1% loss from an overall portfolio perspective). I was able to escape with minor wounds from this blow up, but this one really irritates me. This will be a nice lessons learned…

Going into December, I have the following merger arb plays: Aetna (Ticker: AET) (long common) and Buffalo Wild Wings (Ticker: BWLD) (short Puts). Aetna was really a gamble and it looks like it will pay off (we’ll see how it opens Monday). I see Buffalo Wild Wings as a relatively safe arb play with a closing by the end of Q1.

I will try not to do any additional foolish trades for the remainder of the year. So far this year, I’ve had two blowups: Rite-Aid (Ticker: RAD) and Axalta. No matter how small a position you may have, a blowup really stings. Just have to erase it from your mind and move on…

2017 Performance Year to Date = +42.65% with the running monthly returns as follows:

January -4.50%
February +10.18%
March +5.1%
April +4.34%
May +5.67%
June +1.34%
July + 2.76%
August + 4.81%
September + 0.48%
October + 6.57%
November + 0.1%


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