Midyear 2019

It’s almost midyear 2019. Unlike 2018, activity has been surprisingly sluggish.

Last year I took meaningful new stakes in CHTR, MCK, TCEHY, JD, and FB, and added to BRK, WFC and CFX. Net purchases were nearly $240k. In contrast, the only names I’ve bought this year are WBA and WFC. Net purchases have only been $24k

This is explained in part due to the 10-15% rise in the markets (despite the 5% slip over the last month). In rising markets, there are fewer opportunities. Volatility seems to have picked up a little over the past few weeks, but we are only 5% shy off all time highs.

Currently BRK and FB are my top two position (>10% each). WFC (5%+) is my third largest position, and I am looking to add (through cash-secured puts) to it at current prices. OAK, FFH, and TCHEY round out the 4%+ club.

In terms of winners for 1H 2019, FB (+30%), CHTR (+30%), OAK (+15%, along with significant distributions), MCK (15%). TCEHY and JD went up by a lot before giving up a majority of those gains due to escalating trade tensions.

The high water mark for my portfolio was $730k, but it has subsequently fallen to $695k. I have about 20% in cash ($150k) of which 40% ($60k) is committed to cash secured puts.

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