With the first six months of the year behind me it’s time for the half-yearly portfolio review. As is visible in the table below the first half of 2013 was excellent. I knew my return was good, but I didn’t realize it was this high before doing the math (I’m using multiple brokers, so keeping track of performance takes some work).
* Return in euro’s after transaction costs, dividend withholding taxes and other expenses
** Benchmark is the MSCI ACWI (All Country World Index) net total return index in euro’s
I’m at the moment fully invested and my portfolio is effectively 109% long and 6.3% short. The biggest part of the long exposure above 100% and the balancing short position is the pair trade in the PRISA capital structure that I entered in the beginning of the year. If we ignore this position my long exposure looks as follows:
As discussed here I decided a month ago to increase my bet on Conduril simply because I think the stock is extremely cheap, and I want to bet relative big on my best idea. Since then I bought a few more shares and with the stock price also advancing 10% my current allocation stands at 16.5%. I expect it to grow to become an even bigger part of my portfolio, because if this is my most attractive idea it should outperform the other positions.
While I don’t trade a whole lot in my existing position there has been some movement in my allocations that is not completely the result of the relative performance of the various stocks. I reduced my position in Allan International, and I’ll probably sell the remainder of my position soon. The stock has been a top candidate to sell for me since last December when I reviewed the position, and my net long exposure is currently a bit above my target of 100%. While I reduced my Allan International position I increased my Deswell Industries position a bit. A lot of the return from Deswell Industries is coming in the form of dividends, so even though it’s performing alright the allocation as a percentage of my portfolio was dropping.
I also sold some Alternative Asset Opportunities opportunistically some time ago. The amount of cash collected from the life insurance policies has been very low so far this year while the stock price has been going up since I initiated my position. That said: I do think it’s currently still attractive because how fundamentally uncorrelated the returns are with the general market, and I’am looking to increase my position again when possible.
The individual performance of the various positions has been as follows this year:
||Entry*||Sell Date||Dividend||price**||YTD Return|
|AWDR.OL||May 15, 2013||90.00||–||1.00***
|AKPS.OL||Apr 8, 2013||26.50||May 8, 2013||–||35.90||35.5%|
|BUR.PA||Mar 20, 2013||346.83||–||4.4||326.99||-4.5%|
|PVCS.L||Mar 3, 2013||0.1109||–||–||0.1200||8.2%|
|ALJJ||Feb 12, 2013||0.732||Jun 7, 2013||–||0.84||14.8%|
|UTSI||Feb 11, 2013||2.90
|TLI.L||Nov 21, 2012||47.75||–||–||44.50||-6.8%|
|CDU.LS||Sep 27, 2012||22.00||–||1.50||33.09||57.2%|
|AIG||Sep 10, 2012||35.30||–||–||44.70||26.6%|
|RELLA.CO||July 19, 2012||37.80||–||–||48.00||27.0%|
|CNRD.PK||Mar 29, 2012||18.50||–||28.00||51.4%|
|SODI.OB||Mar 26, 2012||3.45||–||–||3.89||12.8%|
|DSWL||Mar 6, 2012||2.40||–||0.10||2.49||7.9%|
|SALM||Feb 21, 2012||5.46||Apr 3, 2013||0.05||7.85||44.7%|
|IAM.TO||Jan 24, 2012||0.48||Jan 11, 2013||–||0.52||8.3%|
|ARGO.L||Jan 3, 2012||12.50||–||1.30||14.25||24.4%|
|0684.HK||Nov 16, 2011||2.26||–||–||2.40||6.2%|
|ASFI||Nov 7, 2011||9.51||–||–||8.65||-9.0%|
* Entry price or closing price 2012
** Exit price or current price
*** Stock price in NOK, dividend in USD
As is visible Asta Funding (ASFI) has been my worst performing position this year so far, but when your biggest loser is down less than 10 percent you can’t complain. The company has been written up very recently by Whopper Investments on Seeking Alpha, and he provides a refreshed overview of the investment thesis. I think intrinsic value is slowly going up because the company is collecting the outstanding receivables and buying back shares, but it would be nice if they could speed up the latter using, for example, a self tender offer.
I’am hoping that at the end of the year, when it’s time for the next portfolio review, my biggest complaint is still this insignificant :). I certainly don’t expect to repeat the performance of the first six months though: that’s more luck than skill.
Long everything in the above list, except the positions marked as sold.