Saturday, July 31, 2021

July 2021 Performance

Once again, my portfolio underperformed the overall market in July. It’s been a bit challenging as I continue to maintain a decent cash position. This is in contrast to my early investing years in which I was margined to the max. One thing I would say is that you can definitely sleep better at night with a cash position versus a high margin balance.

The only change to my portfolio was the closing out the short Put (expired out of the money) position in Kindred Biosciences. I was short the July $7.5 Puts. I try to find options that expire prior to the HSR announcement with the merger arb plays. The premium may be small, but it gives me greater conviction in going big.

I continue selling way out of the money Puts on the large tech names to generate some weekly income. Statistically, there is a very high probability that these options will expire out of the money. I always do worry about a black swan moment in which a big decline in a particular stock can literally wipe you out. As the saying goes, it’s like picking up pennies in front of a steam roller.

That is all to report for July.


2021 Performance = +7.87% with the running monthly returns as follows:

January -2.1%

February +0.6%

March +0.99%

April +5.77%

May -3.56%

June +4.0%

July +2.23%


At August 01, 2021, Anonymous Anonymous said...

BABA- What do you feel of all the chinese crackdown and Jack Ma rarely seen in the media? I dont own any, but thinking to buying few shares of BABA.

At August 01, 2021, Blogger Money Turtle said...

Alibaba is cheap in terms of valuation and a lot of institutions are throwing in the towel. Alibaba has probably been punished enough with the scrapping of the ANT IPO and the $2.8 billion antitrust fine. Right now all China stocks are radioactive. I'm looking for Alibaba and Tencent to consolidate / form a base before buying.

At August 03, 2021, Anonymous Anonymous said...

MA and V taking big hits, not sure due to virus reemergence or due to SQ and PYPL changing fintech.

At August 03, 2021, Blogger Money Turtle said...

I would attribute to both. Visa did indicate that cross border activity is being negatively affected by Delta. And the news from Square’s acquisition of Afterpay was another excuse to sell off the payment processors. I still really like V and MA. The BNPL is an interesting concept (I see it as a high tech version of lay away), but a niche market. Everything will still run on the V and MA rails whether people like it or not.

At August 24, 2021, Anonymous Anonymous said...

Thoughts on TRIL? Always the possibility of an unforeseen safety event with any biotech, but otherwise the spread seems too wide on this one.

At August 28, 2021, Blogger Money Turtle said...

I need to do some more work with TRIL so not playing this right now. The FTC is starting to get picky with these small deals. Example: Translate Bio, which is being acquired by Sanofi is heading towards a Second Request.


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