Thursday, July 02, 2015

June 2015 Performance

June was certainly a challenging month with the macro events affecting the markets. It was a quiet time for me as I just basically held onto many of the pre-deal plays that were entered in the previous months. I’m still in the following merger arb positions: Altera (Ticker: ALTR), Omnicare (Ticker: OCR), Pall (Ticker: PLL) and Hospira (Ticker: HSP) via short Puts. I anticipate the Hospira deal to close next month.

I initiated a small position (~3%) position in Capitol Acquisition Corp II (Ticker: CLAC). This is basically a blank check company that is in the process of acquiring Lindblad Expeditions. Lindblad Expeditions is a small cruise line that has partnered with National Geographic’s in providing a high end / adventure cruise experience. I’ve always been intrigued with the cruise business and really like the attractive valuation of this deal. This acquisition should close next week pending shareholder approval.   

I’m playing a bit of defensive right now and just waiting patiently for good opportunities to show up.

2015 Performance Year to Date = +15.52% with the running monthly returns as follows:

January +3.4%
February +7.03%
March -0.33%
April +0.39%
May +5.59%
June -1.2%


At July 10, 2015, Anonymous Anonymous said...

Altera is crashing. How do you see the antitrust issue?

At July 10, 2015, Blogger Money Turtle said...

I took off my position in Altera yesterday and just playing it safe for now. Intel and Altera aren't direct competitors with one another, but it's hard to gauge how the regulators with view this market. With Altera gone, it's really Xilinx and Lattice left in this programmable chip segment. Are the regulators comfortable with just two players left after Altera? I would say that this deal goes through...

At July 12, 2015, Anonymous Anonymous said...

I'm used to this kind of speculation, and I could expect it seen that the spread was already huge since few days from the announcement.

But who is this blog/forum created this panic on the antitrust issue? do you know them? Is realiable source or just some sort of organized speculation?

Unfortunately Altera like Micron and some other stock it's too much influenced from the sell off in China market is happening right now, so even with a spread near 9/10% I'm afraid to bet now and so seem that will be another spread that I just need to avoid and wait, or play with 100/200 shares.... just to make from a deal like this 100$. Stupid. But what to do.

At July 12, 2015, Anonymous Anonymous said...

I would like to know about hospira if you think the deal will close after the EU antitrust or what, I mean, after the EU antritrust the deal close, or is still needed some other regulator in the US or other step? do you think so it could close 25 july so before end of july?

At July 12, 2015, Blogger Money Turtle said...

I took a quick look at the blog that raised concerns about Altera / Intel. I wasn't able to read the write up since they have a pay wall, but the site looks credible. The writers are comprised of industry experts / lawyers.

Regarding Hospira / Pfizer... The EU date is July 20th. New Zealand is July 17th. India just granted approval. Obviously, the major decision is the US regulators so I would give it the end of August to complete this deal. It would be nice if this deal gets done by the end of July!

At July 13, 2015, Anonymous Anonymous said...

thank you for now, I will write you here next days, thanks

At July 16, 2015, Blogger Money Turtle said...

Update: EU extended review to 8/4 pending divestitures by Pfizer
New Zealand just approved the deal

It still looks like this deal is on track to close by the end of August.

At July 18, 2015, Anonymous Anonymous said...

$RCPT spread looks very safe?

At July 18, 2015, Blogger Money Turtle said...

Yes, the spread looks safe. I'm playing this by selling Puts on RCPT.


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