August 2022 Portfolio Update

As of 30-August-2022,

S&P 500 Index Fund: -16.2% -> -12.44%

Hong Kong Tracker Fund: -5.65% -> -9.9%

Straits Times Index Fund: 1.4%-> 6.61%

My portfolio: -5.49% -> -9.12%

It is not a great feeling to see your portfolio sink when indices rises. My performance this year should be the worst ever since I started recording my investments in Stockscafe.

Notable Transactions:

1) Complete divestment of IGG

IGG was disposed for two reasons, (a) possible turnaround in the Central China story and (b) zero insider buying in recent times, (c) perhaps, lack of confidence in the game in question. The game in question is Yeager and it might turn out to be a big hit, and I might truly regret it, since IGG is considered fairly cheap.

2) Modest increase in Central China Management ("CCMGT")

3) Modest increase in Central China Real Estate ("CCRE")

I am utilizing my funds for this two ideas as I deem them risky. CCMGT is very cheap at 0.710 provided the cash in the books is real-- it is almost as much as the market capitalization itself. CCMGT has about 2B Renminbi in cash, and the market cap was 2.3B HKD.

Both CCRE and CCMGT are high risk bets given the debt on the former's books. This will be a long, painful holding period, and if I am right, I would be well rewarded and otherwise, I would lose as much as 15% of my portfolio. On a cost basis, they would amount to a close #2, very close to what OKP would have cost (26%).

This is a very risky investment.

4) Purchase of SSB September for my parents

2.6% is not too bad.

5) Modest increase in Nanyang Holdings

Unfortunately, Nanyang Holdings is one of the three companies (besides CCMGT, CCRE) to report a profit warning.. so with lower prices, comes lower risk.

6) Increase in Yangzijiang Finance.

Modestly increasing YF8 due to lowering prices and aggressive company buybacks.

****

These are very dark days. My mum is having a medical review on her pancrea MRI in 2 days, and only yesterday, we were informed that my maternal uncle have a very grim medical condition. It is not a great feeling when you return home from work, and your mum ask "how are the stocks doing?"

To that, I could only utter, "these are times where you have to endure."