January 2021 Performance

Well, I started January with a nice little loss of 2.1%. My long holdings remained constant (Apple, Airbnb, Alibaba, Mastercard, Qiagen, Sanofi, Constellation Brands and Visa) with cash remaining at ~ 9%. Of all the companies in my portfolio, I see the biggest potential upside in Constellation Brands. The catalyst I see with Constellation Brands is the passing of a cannabis legislation to legalize use at a Federal level later this year. I really did not expect any significant legislation for several years out, but with the Democrats in control of the Senate, this may become a reality.

Now back to the merger arb space. Tiffany finally closed in January and my Short Put positions paid off nicely. I just initiated a position in Acacia Communications, which is being acquired by Cisco for $115 in cash. All antitrust approvals have been received so it’s just a waiting game for the shareholder vote. I’m playing Acacia via Short Puts.

Even though it’s a new year, I’m going to follow my same old strategy of holding strong to my long positions and supplementing additional income from the merger arb plays & selling way out of the money options.

That is all for now…

2021 Performance = -2.1% with the running monthly returns as follows:

January -2.1%