It has been a long time since I’ve updated the blog. I’ve been busy making changes to my portfolio. One of the lessons learned from prior years is that laziness is not good for value investors with small capital. So I’ve been more active in monitoring my holdings and making changes.
Cheasepeake Energy: I sold out of CHK in Aug ’14. The main reason was the ability to find and buy other companies where the upside was huge.
Bank of America Warrants: I cut back my position on BAC warrants. Again, the upside I see in other positions was much more than what I see at BAC. Although this is still over 10% position for me, so I still believe there is plenty of upside left.
Derma Science: I sold out of the position that I bought in Q1. I still like this company and the Q2 numbers showed that there is lot of growth for this company. Although I think this will take a long time to play out, so I decided to move the capital elsewhere.
ID Systems: I bought a large stake in IDSY. After the new CEO taking over and seeing the Q1 results I bought a huge stake in the company. I then doubled the position after the Q2 numbers came out. The new CEO is fixing the mistakes from the prior CEO and investing capital into new products. Also the CEO is building the relationship and increasing “wallet size” with existing customers. I think there is huge upside to be had at current prices.
Accretive Health: We have been buying more shares in this position. I think we are only months away from restated financials. The company has been able to get a great CEO and a good CFO to join the company. The company has a huge cash position and revenues will grow once the restatement is behind them. Plus there is a huge tailwind for their services.
So far 2014 has been unexpectedly good. We knew our holdings were cheap but I didn’t except the move up to happen so quickly. We are up almost 40% for the current year, with plenty of upside still to come from some of my holdings. Although the downside of these returns is that I’m having a hard time putting cash to work. I’m not finding many new opportunities. But for now, I expect to have much more upside for 2014.
4 responses to “Portfolio updates”
great performance. What has been the main driver(s)? Thanks.
There have been a bunch of holdings that have done really well. Many were a 30-50% returns in 2-5 months. But the largest winner has been XPEL, my biggest position. It is up 95% YTD and might have much more to run in the rest of the year.
I think the main reason for the good returns is getting more aggressive with my best holdings and re-allocating capital to best opportunities. The later, I wasn’t that good at in the past. So it is good to see the change pay off.
have y seen the last Q of taro pharma?
its look like a very intersting price!
Yes, Taro is doing exceptionally well. The pricing is here to stay as there isn’t much competition. Also, the company is spending lots of money on R&D to grow the pipeline. There is huge upside optionality w/ the cash and a shrewd buyer in Dilip Sanghvi.