Thursday, May 09, 2024

April 2024 Report

Well, I finally went into the negative territory for the year with the April results. The decline can be attributed Constellation Brands and Visa. Constellation Brands delivered a good quarterly result but sold off on the news. I am still very bullish on Constellation Brands and really like their capital return to shareholders via dividend / share buyback. Visa is just an amazing compounding machine that will do just fine in this inflationary environment. Nothing has fundamentally changed with these companies, and I intend to continue to hold them for the long term.

I have not been involved in any recent merger arb plays as I still find it tricky with this administration. The FTC attempt to block Tapestry’s acquisition of Capri is such a joke. I really want to see the FTC lose this case as this is a total waste of tax-payers money to fight this merger. In my wildest dream, I cannot see how the consumer is harmed by this merger. We are talking about “accessible luxury” handbags! Ok, enough of my rant on the FTC.

I still have a healthy cash position at ~ 8% and slowly building on that with the premiums from selling options. I am just waiting patiently for a good opportunity. I have no problem waiting with cash yielding ~ 5%.

2024 Performance = - 2.41% with the running monthly returns as follows:

January + 0.02%
February +0.99%
March – 0.33%
April - 3.07%