Friday, August 03, 2018

July 2018 Performance

July was a month where I really did nothing and the portfolio just managed itself into a gain of +1.53%. The majority of the gains can be attributed to my long positions in Apple (Ticker: AAPL), Qiagen (Ticker: QGEN), MasterCard (Ticker: MA), Sanofi (Ticker: SNY) and VISA (Ticker: V), while Alibaba (Ticker: BABA) and Constellation Brands (Ticker: STZ) continued to drag down the performance. The merger arb plays also had a minor positive contribution with positions in JA Solar and Foundation Medicine.

I just want to thank Merger Pie for a heads up on the pending closure of JA Solar. This was a free money play as there was still a nice little spread with days to closing. The other merger arb play that I was involved in for July was Foundation Medicine via Short Puts. I did not have a large position in Foundation Medicine as the maintenance requirement was just too high. Foundation Medicine’s deal with Roche just closed and the options will be accelerated to an August expiration.

I have added to my Short Put position in Rent A Center (Ticker: RCII). The company just posted another strong earnings report as they continue to successfully execute their turnaround plan. I’m modeling a close by the end of November with Vintage Capital. Rent A Center would be flying high right now if it weren’t for the Vintage Capital buyout. It’s a heavily shorted stock and with this strong earnings report, the shorts would be squeezed pretty hard. I would never consider investing in a rent to own biz until this special situations showed up. It’s actually a very nice biz model that unfortunately preys on the people, who really can’t afford to purchase the merchandise. These people will just make a few monthly payments and the company will repossess once they are late with their payment.

That’s all I have for July…

2018 Performance = +14.63% with the running monthly returns as follows:

January +2.80%
February +2.82%
March -0.03%
April +2.10%
May +6.25%
June -1.51%
July +1.53%


At August 08, 2018, Anonymous Anonymous said...

Anything fun in the market these days other than TSLA? Feel like i might cancel my netflix with all the entertainment Musk is providing...

At August 08, 2018, Blogger Money Turtle said...

Don't really see anything right now. I'm not touching TSLA...

At August 15, 2018, Anonymous Anonymous said...

What is your opinion about STZ. Thank you.

At August 15, 2018, Blogger Money Turtle said...

STZ: They definitely paid a hefty premium to gain additional control of Canopy Growth. I do believe this will pay off in the longer term. I added to the pull back today.

At August 16, 2018, Anonymous Anonymous said...

STZ: Do you re-balance your portfolio or buy with new cash?

At August 31, 2018, Blogger Money Turtle said...

I added to my STZ position with cash on the sidelines. I did not sell any position to buy more STZ.


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