Friday, March 30, 2018

March 2018 Performance

I managed to come out flat for March with a loss of -0.03%, which is not bad considering the S&P 500 was down ~ 3.1% for this period. I really did not do much in March except for letting the short Puts in Bioverativ and Juno Therapeutics expire. With the closing of Bioverativ and Juno Therapeutics, I do not have any open arb / special situation plays. The market volatility definitely helped to minimize any potential gains from my growth stocks. This market volatility is a traders dream, but unfortunately for me I am an awful trader. I’m staying committed to my game plan by focusing on long term growth stocks and generating additional returns from special situations plays.

Constellation Brands continues to be my largest position comprising ~ 35% of my portfolio. The company reported a nice earnings report yesterday. I was pleasantly surprised by the 42% hike in dividend to $0.74 per share / quarter ($2.96 per year) with a current yield of ~ 1.3%. I continue to believe there is more room to run with this stock as the company starts returning excess cash (share buybacks and dividend increases) to shareholders after completion of their brewery expansions.

Even with this market volatility, I still cannot find any bargains as valuation is still quite elevated. I continue to maintain a good cash cushion and patiently waiting for opportunities to develop…

2018 Performance = +5.65% with the running monthly returns as follows:

January +2.80%
February +2.82%
March -0.03%