1. We remain holders of Google (GOOG) and Apple (AAPL) although we are down to small positions. We especially think AAPL is likely to go down as reality settles in but don’t feel comfortable selling out our last 1/4 position.
2. Purely as a short-term trade we shorted Netflix (NFLX) based on flimsy takeover hype. We recently covered half due to the fortunate turn of events from Blockbuster (BBI) and analyst downgrades. We may close it out any time since we have no special edge on NFLX.
3. We sold out of our long on Amazon (AMZN) a while back (before the recent increase from $45 to $70) because we were unimpressed with its fundamentals. Despite a better-than-expected Q1 we don’t see any fundamental changes in its investment merits. Now the stock is almost 2x where it was just a short while ago. We absolutely love Amazon as consumers and technology experts given what it's doing with EC2, S3, AWS and so forth. But as investors we felt we had to take a short position at these levels.
4. Consistent with our piece in the May Technology Monthly, we initiated a set of long positions on Microsoft (MSFT) which we feel has better fundamentals than the investment community is giving it credit for.
From time to time we do adjust our partners' portfolio positions based on reasons outside of our current research agenda. And sometimes we even disclose these moves as they are illustrative of our thinking: