Davy Bui's Instablog Since late 2006, Davy Bui has publicly posted stock picks, research reports and market commentary on his Enlightened American blog, outpacing the market by 9%, 13.5% and 17% in 2007, 2008 and 2009 respectively (http://www.enlightened-american.com/wealth/portfolio.html). Adapting a value-based approach, he evaluates general investment strategies and specific stock recommendations by combining macro-economic themes, fundamental analysis, delegation by emphasizing good management teams and risk mitigation via margin-of-safety requirements. Contact him at this page: http://www.enlightened-american.com/contact.html Davy Bui http://seekingalpha.com YTD Portfolio Results & Market Commentary http://seekingalpha.com/instablog/128497-davy-bui/200806-ytd-portfolio-results-market-commentary?source=feed 200806
  • Enlightened-American Portfolio: +7.2% through August 1st, 2011 (my actual IRR, including cash balance)
  • DJIA: +4.8%
  • Nasdaq: +3.5%
  • S&P 500: +2.3%
  • DJ Wilshire 5000: +2.2%
  • Russell 2000 (smallcap): +1.2%
I must admit some pleasure at walking away from the portfolio for a month only to return to YTD results showing us outperforming all the major indices we follow. Once again, this proves the old value investing maxim that most of the time, the best move is to do nothing.

Of course, it was entertaining to return to watch the political kabuki known as the debt ceiling crisis. One look at the markets was all it took to confirm just how toothless this "crisis" was  -- 10 year Treasury yields actually tightened last Friday below 2.8%, hardly a sign of weakening confidence in US debt even as political pundits went into hyperbolic overdrive about a deal. US stock markets' reaction today, with the Dow finishing slightly down despite news of the deal, only reinforces that politicians have been toying with Main Street's emotions even as all sides made sure to clue Wall Street in on what was truly at stake in these negotiations, which was ultimately nothing.

I have long asserted that smart investors know the only ideology to adhere to is pragmatic flexibility. There may be a time to raise taxes, there may be a time to cut spending but in the face of an economy on the brink of a double-dip recession, that time probably is not now.

In any case, our investments do not hinge on politicians or the Fed getting political and economic policies right (a losing proposition if ever there was one).  The portfolio's outperformance since the last update owes in large part to big gold positions -- CEF, AUY and MFN, though the latter is offset by an in-the-money call due to exercise this month. Good showings by EWS, GSK, CSCO (which we doubled down on in June) and CHK preferred D shares all bolstered YTD results while the S&P 500 lost a few basis points of return since mid-June.

But that is all in the past and the important task at hand is how to position for the future. My answer is always the same: continue looking for good opportunities at cheap prices and let the big picture take care of itself. As always, YMMV.]]> Tue, 02 Aug 2011 02:08:19 -0400
  • Enlightened-American Portfolio: +7.2% through August 1st, 2011 (my actual IRR, including cash balance)
  • DJIA: +4.8%
  • Nasdaq: +3.5%
  • S&P 500: +2.3%
  • DJ Wilshire 5000: +2.2%
  • Russell 2000 (smallcap): +1.2%
I must admit some pleasure at walking away from the portfolio for a month only to return to YTD results showing us outperforming all the major indices we follow. Once again, this proves the old value investing maxim that most of the time, the best move is to do nothing.

Of course, it was entertaining to return to watch the political kabuki known as the debt ceiling crisis. One look at the markets was all it took to confirm just how toothless this "crisis" was  -- 10 year Treasury yields actually tightened last Friday below 2.8%, hardly a sign of weakening confidence in US debt even as political pundits went into hyperbolic overdrive about a deal. US stock markets' reaction today, with the Dow finishing slightly down despite news of the deal, only reinforces that politicians have been toying with Main Street's emotions even as all sides made sure to clue Wall Street in on what was truly at stake in these negotiations, which was ultimately nothing.

I have long asserted that smart investors know the only ideology to adhere to is pragmatic flexibility. There may be a time to raise taxes, there may be a time to cut spending but in the face of an economy on the brink of a double-dip recession, that time probably is not now.

In any case, our investments do not hinge on politicians or the Fed getting political and economic policies right (a losing proposition if ever there was one).  The portfolio's outperformance since the last update owes in large part to big gold positions -- CEF, AUY and MFN, though the latter is offset by an in-the-money call due to exercise this month. Good showings by EWS, GSK, CSCO (which we doubled down on in June) and CHK preferred D shares all bolstered YTD results while the S&P 500 lost a few basis points of return since mid-June.

But that is all in the past and the important task at hand is how to position for the future. My answer is always the same: continue looking for good opportunities at cheap prices and let the big picture take care of itself. As always, YMMV.]]> cef auy mfn ews gsk csco chk Portfolio Results Year-To-Date http://seekingalpha.com/instablog/128497-davy-bui/188364-portfolio-results-year-to-date?source=feed 188364 THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET

  • Enlightened-American Portfolio: +2.2% through June 14th, 2011 (my actual IRR, including cash balance)
  • DJIA: +4.5%
  • Nasdaq: +1.1%
  • S&P 500: +2.6%
  • DJ Wilshire 5000: +2.4%
  • Russell 2000 (smallcap): +1.4%

Apologies for the tardy update this month. Stocks' summer swoon leaves us decidedly in the middle of the pack compared to the above market indices but seeing as the Enlightened American portfolio was trailing ALL of the indices by 4-7 points last month, it's been a good month.

While my portfolio is loaded with many of the commodity names that have fallen hard in recent weeks, losses were offset by my large cash holding. Judging from the recent Barrons Roundtable mid-year article, some astute market watchers are expecting further weakness but as a value investor, I can not be overly concerned with market forecasts, even if they prove accurate. Investment decisions must be based on absolute value criteria ... if markets should afford better (lower) pricing later, all the better for us.

Don't get me wrong, I still regard markets as mostly overvalued, even with this recent minor correction. But there are patches of value available, most notably Cisco Systems (CSCO), a position I've bolstered in recent weeks. I have also entered a China small-cap arbitrage play in Chemspec International (CPC). Despite these purchases, cash remains at 25% of available capital. If further opportunities arise, my cash holding will continue to shrink.

]]> Mon, 20 Jun 2011 04:32:44 -0400 THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET

  • Enlightened-American Portfolio: +2.2% through June 14th, 2011 (my actual IRR, including cash balance)
  • DJIA: +4.5%
  • Nasdaq: +1.1%
  • S&P 500: +2.6%
  • DJ Wilshire 5000: +2.4%
  • Russell 2000 (smallcap): +1.4%

Apologies for the tardy update this month. Stocks' summer swoon leaves us decidedly in the middle of the pack compared to the above market indices but seeing as the Enlightened American portfolio was trailing ALL of the indices by 4-7 points last month, it's been a good month.

While my portfolio is loaded with many of the commodity names that have fallen hard in recent weeks, losses were offset by my large cash holding. Judging from the recent Barrons Roundtable mid-year article, some astute market watchers are expecting further weakness but as a value investor, I can not be overly concerned with market forecasts, even if they prove accurate. Investment decisions must be based on absolute value criteria ... if markets should afford better (lower) pricing later, all the better for us.

Don't get me wrong, I still regard markets as mostly overvalued, even with this recent minor correction. But there are patches of value available, most notably Cisco Systems (CSCO), a position I've bolstered in recent weeks. I have also entered a China small-cap arbitrage play in Chemspec International (CPC). Despite these purchases, cash remains at 25% of available capital. If further opportunities arise, my cash holding will continue to shrink.

]]> csco cpc 2011 Q1 Portfolio Tracking: Bruce Berkowitz, David Einhorn, Mohnish Pabrai, Boone Pickens http://seekingalpha.com/instablog/128497-davy-bui/178678-2011-q1-portfolio-tracking-bruce-berkowitz-david-einhorn-mohnish-pabrai-boone-pickens?source=feed 178678 BAM, CSCO, GSK, TEF) in Berkowitz's new buys in Q1.  

]]> Mon, 16 May 2011 19:28:26 -0400 BAM, CSCO, GSK, TEF) in Berkowitz's new buys in Q1.  

]]> bam csco gsk tef hedge funds 2011 Q1 Portfolio Tracking: Seth Klarman, David Winters, Meryl Witmer available http://seekingalpha.com/instablog/128497-davy-bui/178065-2011-q1-portfolio-tracking-seth-klarman-david-winters-meryl-witmer-available?source=feed 178065 Enlightened American blog:
You can check my blog for the latest updates and reported filings.

The item that really jumped out at me was Seth Klarman opening a position in Allied Nevada Gold (ANV). At $87M, it is not a huge position but is the first time in the years I've been following him that I can recall Klarman's Baupost fund buying a gold mining stock.
]]> Fri, 13 May 2011 20:17:01 -0400 Enlightened American blog:
You can check my blog for the latest updates and reported filings.

The item that really jumped out at me was Seth Klarman opening a position in Allied Nevada Gold (ANV). At $87M, it is not a huge position but is the first time in the years I've been following him that I can recall Klarman's Baupost fund buying a gold mining stock.
]]> anv hedge funds gold seth klarman 2011 YTD Portfolio Results, Blog Status Update http://seekingalpha.com/instablog/128497-davy-bui/161757-2011-ytd-portfolio-results-blog-status-update?source=feed 161757 THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET
  • Enlightened-American Portfolio: +8.1% through Apr 6th, 2011 (my actual IRR, including cash balance)
  • DJIA: +7.3%
  • Nasdaq: +5.5%
  • S&P 500: +6.2%
  • DJ Wilshire 5000: +6.5%
  • Russell 2000 (smallcap): +9.0%

As some of you know, I have decided to close down the EA-Premium service. I must thank all the wonderful supporters -- they definitely made it a tough decision -- but one look at my uncensored portfolio should give a clue as to why I chose to do so. It's tremendously difficult to run an investment newsletter service when 99% of the time, there is nothing to do besides wait  and little to say about it. Long-time readers will recognize the bulk of my commentary as seemingly endless variations on "market's pricey ... investors crazy ... nothing to do ... best to wait" and frankly, starting a subscription service didn't (nor should it have) change my market outlook. I believe in not talking unless I have something to say. But subscribers pay for content and as I feared, content provider, especially as a one-man newsletter operation, is a full-time job not necessarily compatible with being an investor.

What all this means is readers can expect more activity on this blog than in the last year or so. A visit to the portfolio page will show a streamlined, uncensored version of what used to be posted, all in the interest of making blog posts and updates less time-intensive.  Unfortunately, I have been set back by a recent data + back-up failure so am (very) slowly rebuilding my watchlist but readers can expect more discussion on those stocks in my list in coming weeks and months.

As for my portfolio overview and market outlook, let's see ... market looks pricey ... investors are crazy to jump into this market ... none of the stocks on my watchlist are cheap enough to buy ... best to wait for a good opportunity ... nothing to do. And I can't argue with doing nothing as my portfolio continues to outperform most indices, even with 30% cash dragging on returns.

Big positions in energy and precious metals accounts for the bulk of performance thus far. Money is cheap. Actually, money is less than cheap -- it's basically free to Wall Street so I favor hard commodities. I have held this stance since starting the Enlightened American back in 2006 and nothing has changed.  The big picture is much like a jumbo jet -- both take a long time to change course and if anything, the Fed's actions in recent years has only accelerated us along the path, not corrected it.

As always, YMMV.

]]> Wed, 06 Apr 2011 21:59:37 -0400 THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET
  • Enlightened-American Portfolio: +8.1% through Apr 6th, 2011 (my actual IRR, including cash balance)
  • DJIA: +7.3%
  • Nasdaq: +5.5%
  • S&P 500: +6.2%
  • DJ Wilshire 5000: +6.5%
  • Russell 2000 (smallcap): +9.0%

As some of you know, I have decided to close down the EA-Premium service. I must thank all the wonderful supporters -- they definitely made it a tough decision -- but one look at my uncensored portfolio should give a clue as to why I chose to do so. It's tremendously difficult to run an investment newsletter service when 99% of the time, there is nothing to do besides wait  and little to say about it. Long-time readers will recognize the bulk of my commentary as seemingly endless variations on "market's pricey ... investors crazy ... nothing to do ... best to wait" and frankly, starting a subscription service didn't (nor should it have) change my market outlook. I believe in not talking unless I have something to say. But subscribers pay for content and as I feared, content provider, especially as a one-man newsletter operation, is a full-time job not necessarily compatible with being an investor.

What all this means is readers can expect more activity on this blog than in the last year or so. A visit to the portfolio page will show a streamlined, uncensored version of what used to be posted, all in the interest of making blog posts and updates less time-intensive.  Unfortunately, I have been set back by a recent data + back-up failure so am (very) slowly rebuilding my watchlist but readers can expect more discussion on those stocks in my list in coming weeks and months.

As for my portfolio overview and market outlook, let's see ... market looks pricey ... investors are crazy to jump into this market ... none of the stocks on my watchlist are cheap enough to buy ... best to wait for a good opportunity ... nothing to do. And I can't argue with doing nothing as my portfolio continues to outperform most indices, even with 30% cash dragging on returns.

Big positions in energy and precious metals accounts for the bulk of performance thus far. Money is cheap. Actually, money is less than cheap -- it's basically free to Wall Street so I favor hard commodities. I have held this stance since starting the Enlightened American back in 2006 and nothing has changed.  The big picture is much like a jumbo jet -- both take a long time to change course and if anything, the Fed's actions in recent years has only accelerated us along the path, not corrected it.

As always, YMMV.

]]> Hedge Funds Report Q3 2010 Holdings http://seekingalpha.com/instablog/128497-davy-bui/111556-hedge-funds-report-q3-2010-holdings?source=feed 111556 General Electric (GE). While Berkowitz has been high on financials for some time now, it's unclear if GE's financial arm is what lured Berkowitz in.

If you have a strong case for other managers I should include, send me an email or post in the comments below. Also, keep in mind that I use a perl script to parse these filings into the spreadsheet format and some information may be misrepresented. As always, YMMV.

Disclosure: Long: GE]]> Tue, 16 Nov 2010 00:52:25 -0500 General Electric (GE). While Berkowitz has been high on financials for some time now, it's unclear if GE's financial arm is what lured Berkowitz in.

If you have a strong case for other managers I should include, send me an email or post in the comments below. Also, keep in mind that I use a perl script to parse these filings into the spreadsheet format and some information may be misrepresented. As always, YMMV.

Disclosure: Long: GE]]> ge hedge funds