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…
4 Comments:
What do you think of new IPO Prosensa? Seems very interesting with phase 3 on DMD?
Aapltrader
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.
check out sprd arb - it is interesting.
I was going to write about SPRD. I accumulated a decent position yesterday.
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