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Friday, July 13, 2018

Portfolio Commentaries, 3 weeks into Q3


Since the last portfolio-related post on 20-June, nothing has changed. The market continues to experience draw-downs in prices. Tariffs were threatened, between United States and internationally. It is not my policy to invest based on macro trends-- I take a simpler, bottom-up approach to investing.


Year-to-date, my little portfolio returned 10.48% against -2.53% for STI. This is due to one of the best, single-day returns today.

There were only 4 significant transactions done since the last update:
1) First investment into Hop Fung group, which is incredibly cheap by book value. I didn't find this stock, I credit this to my mate who found it.

2) Slight increase in Religare Health Trust (RHT) after auditors sound off a going-concern matter. I believe the Fortis privatisation deal should be either done or that RHT could refinance. The market was very concern, going from 0.77 to 0.71. I bought a few more at 0.735 (didn't saw 0.71 coming).

IHH and Fortis sealed the deal today and RHT went up 4% on news. I suppose we should see further movement in 2 months. I might just reallocate capital to another idea.


3) Liquidation of Perfect Shape. There are still trade receivable concerns that goes unaddressed by the Investor Relations. Overall I am glad to get a 40% gain off in less than 2 months.

However, I would not have sold if not for the issue of the receivables. I was quite confident I found a growth stock at a bargain price, but the earnings were questionable, at least for me.

4) Purchase of Wheelock Properties, as espoused in the previous post.  It was a very small position that went up over 6% today. I have no idea what is going on. Perhaps the market agreed with me for once.

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