Portfolio Update 30/06/2020
Deep Value, Value, Commodities, Gold
Seeking Alpha Analyst Since 2017
I enjoy my anonymity, which I think is underappreciated in today's world, where I write under the name Bang For The Buck. I hold a BSc and MSc in Financial Economics and I have extensive experience with the investment management industry. I am the CEO of a small investment company. I primarily focus on turnaround stories, with attractive valuations, in cyclical industries.
Presently, I am very focused on the precious metals industry due to current monetary and fiscal policies. I am also invested in the uranium and oil & gas industries, due to underinvestments together with very attractive valuations.
I publish regular articles on Seeking Alpha and offer an investing group service called Off The Beaten Path where subscribers receives real-time updates on the portfolio, in-depth portfolio reports, and frequent updates on holdings companies. As the name suggest, I primarily invest in industries and companies that are underappreciated, which I have found provides more attractive returns.
I am always happy to respond to comments and questions in my articles during the first few days. More in-depth and ongoing discussions are had inside Off The Beaten Path.
Summary
- The YTD return is primarily driven by the significant allocation to precious metals related equities.
- Those precious metals related equities have also outperformed within the industry, which has boosted returns.
- I had some losses in oil earlier this year, but uranium and shipping are otherwise relatively flat during the year.
This report is published monthly on bangforabuck.net and I just thought I would add it here mid-year. Given that it is not possible to receive email notifications on SA blog post, it will not be published as frequently here.
June Activity
Both Euronav and Sprott paid dividends during the month of June which boosted the cash balance some. I made some very minor additions into Shipping, but the activity was otherwise very limited.
Performance
June was another great month in terms of performance, exclusively driven by the precious metals segment.
My three stocks in the segment; Sprott, GoGold, and Argonaut Gold have all had fantastic returns from the lows in March. Valuations do matter despite to what some pundits will try to make us believe.
My shipping and uranium investments went in the opposite direction during June, which is not a significant concern as I will continue to buy opportunistically in those segments.
Yellow Cake announced today that the company has expanded its buyback program, which should hopefully decrease the very large discount to NAV. The discount to NAV and low operational risk is the reason why Yellow Cake is my largest investment in the uranium segment.
The year-to-date performance is defined by the large drop in Standard Drilling before exiting and the outperformance in precious metals related stocks. The uranium and shipping investments have so far had a relatively minor impact to the overall portfolio performance.
Allocation
The allocation to the precious metals industry is starting to become extreme, but I still see further upside in the various stocks. I will let the stocks run for the time being, but might chose to take some profit in the not too distant future if this continues.
I am presently not looking for any new investments in the precious metals industry despite the very interesting macro environment.
This post should not be viewed as investment advice. I am simply sharing my positions based on my individual risk preferences and views on risk-reward. We all have different risk preferences, estimated valuations of companies, and tax implications.
This model portfolio will approximately match my actual portfolio on a percentage level, but the $ values will differ. The model portfolio contains all my long positions. I sometimes have short positions which are not tracked simply because those positions change too frequently and they are often smaller in size.
Analyst's Disclosure: I am/we are long SII, GLGDF.
I am long all stocks mentioned.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.