PORTFOLIO UPDATE: STRICTLY BUSINESS
During the trading day, I tweeted the following:
A majority of the liquidations I make within the portfolios I manage are due to asset allocation decisions as opposed to any fundamental opinions with respect to company that I am liquidating. JMBA certainly falls into that category. I expect the stock to be significantly higher in the coming 12-24 months but have to be cognizant of companies that are have a greater degree of market risk than others. Being that we are in a softening environment if I can find names that have a lesser degree of market risk or beta then I will allocate towards those names.
I have recently discovered a technology company that seems to have minimal downside risk with even less correlation to the general market. Completely under the radar with tremendous upside potential. I will be detailing the company in a research report in the coming one to two weeks.
The current portfolio has been performing remarkably well this month despite the volatility in the markets. Given this fact, I don't want to tinker with it too much, taking away what has been relatively steady performance in a terrible market. The allocation is currently 70% long, 25% short and 5% in cash.
Long positions: WMIH, IWSY, HMPR and CIDM
Short positions: TZA (long)
I'll have full performance and position details in the monthly summary this weekend.