I’ve been quite on the blog for a long time, so an update was called for. This year I’ve cut back on the number of holdings I have. I wanted to focus more on my best ideas instead of spread thin and hold multiple ideas that were a small position size. I haven’t found much new stuff to invest in but there has been one new idea that I have been buying up recently.
– BAC Warrants: I sold out of this position with good, not great, returns. I got 94% return over 3 years. Although there is still lot more upside to the shares and warrants, once the interest rates get increased, I think it won’t be a huge winner. Infact, if I looked at other holdings in the same period I could have made better returns by re-investing the capital from BAC to other holdings.
– ID Systems: I sold out of this position. The main rational was there are much better opportunities elsewhere. I think the company has finally turned around and the revenues will start increasing. But the upside is not that huge compared to other holdings.
– Ackroo (AKR): I built a large position in this company in 2015. The company is going through a transition and is poised for a huge upside. The new CEO has fixed the cost structure, created a new go-to strategy, executed well on the strategy, and has now started to build on M&A strategy. I think the company needs to show positive EBIDTA and cash flow, which will happen by year end. Once these two metrics work out then the company can execute on the M&A strategy and grow the business rapidly.
I currently only have 3 major holdings, there is 1 another position but it accounts for less than 1% of the capital. Xpel, Ackroo, and Sevcon will be the key drivers in how well I do in 2015 and going forward. I think all 3 are poised for huge numbers this year. The returns will be dependent on when the market realizes the value in these 3 companies. But I’m confident they will do exceptionally well in executing their strategy to grow business and increase value in 2015.
2 responses to “Portfolio update”
hi there,what about TARO ?tnx
I sold out of Taro a while back. Taro will do well in the long run but it will always sell at a discount because Sun owns 70% of the company.