Friday, May 30, 2014

May Performance

I really don’t know what happened, but May turned out to be a strong month even though it didn’t feel like it. My portfolio generated a healthy return of 7.30% and a good chunk of it can be attributed to Apple (Ticker: AAPL). My other large positions such as Constellation Brands (Ticker: STZ) and Visa (Ticker: V) held up fairly well, but did not break into new highs like Apple. I believe there’s more upside as there seems to be a lot of skeptics out there, who are predicting a significant decline. As they say, a bull market climbs a wall of worry.

I have initiated a few new special situation plays such as B/E Aerospace (Ticker: BEAV) and Rackspace (Ticker: RAX). I still have a position in Safeway (Ticker: SWY) via short Puts.

I also added to my position in Vertex Pharmaceuticals (Ticker: VRTX), which currently makes up ~ 11% of my portfolio. Next month the company should be releasing the top line results from their phase 3 clinical trials on VX-809 and Kalydeco for cystic fibrosis. No doubt, this will be a big binary event. Obviously, I expect positive results, but you can never be certain with the final outcome from the trials. In any case, I like the odds based on the results from their phase 2 trials.

Performance Year to Date = +8.93% with the running monthly returns as follows:

January -0.67%
February +6.50%
March -2.69%
April -1.51%
May +7.30%

Friday, May 09, 2014

Some Trades

It’s been a fairly busy week and did not have time to post my recent transactions. I started pruning my portfolio a bit and closed out the following positions:

(1) Sold Loral Space and Communication (Ticker: LORL) for a 0.45% gain
(2) Sold IMS Health (Ticker: IMS) for a 19% gain (tiny position – received shares in the IPO)
(3) Bought back the July 60 short Puts on Joseph A. Bank Clothiers (Ticker: JOSB) for $0.14 (sold at $0.40)
(4) Bought back the October 60 short Puts on Joseph A. Bank Clothiers for $0.28 (sold at $0.45)

I initiated a new position in AerCap Holdings (Ticker: AER) at $43.75. I like this air lease company a lot and plan on adding on any dips. It’s currently an 8% position.

Safeway (Ticker: SWY) is the only merger arb play I have at this moment. I am playing this via short Puts.

That’s it for now…