Old School Value Stock Portfolio Performance
July was another great month where my portfolio increased by 22.37% compared to the S&P’s 7.41%. YTD has increased dramatically from 49% last month to 83.42%. The rise was again due to my large position in ValueVision Media (VVTV) doing well. VVTV has now grown from the initial 10% allocation to well over 30%.
I have considered selling several times but held back each time whenever I weighed up the options between what I view as the future prospects.
PDII is also another net net that I’m looking forward to in the future.
DISK has gone down considerably since I first bought it, down 42.31%, but I'm still holding as it’s less than 1% of my portfolio and selling it would be more costly with the fees.
Everyone is talking about a pullback in the markets but I’m confident in the businesses that I hold (minus a few) and will purchase more if the opportunity presents itself.
In July, three trades were made.
There was a fairly big drop in MHH towards the middle of the month on low volume and no news. Seemed like a small investor selling out so I took the chance to add more. It seemed to have worked as it climbed back up to where it was trading previously. MHH now accounts for 7.5% of my total portfolio.
2. Sold BreitBurn Energy Partners (BBEP) at $7.95 with a 26.19% gain.
I didn’t do too much homework on this company but bought it on the over-reaction following the distribution cut. Seth Klarman’s interest in the company also helped me to purchase it along with advice from fellow value investor PlanMaestro.
Since I also wasn’t keeping up with the company and doing the required work to stay on top of things, I felt it was safer to sell. CRDN is also falling into this category.
3. Sold Linktone (NASDAQ:LTON) at $2.44 with a 56.19% gain.
I invested in LTON after going through plenty of net net deep value stocks and LTON was trading at a 26% discount to its liquidation price. The majority of the value was comprised of cash.
LTON was also sold based on a pre-determined open sell order even though I liked the direction the company was taking.
Disclosure: I hold all stocks mentioned except sold positions.