PORTFOLIO UPDATE: GIVE ME ALL YOU GOT
During the trading day, I tweeted the following:
I want more exposure. Ideally, barring sudden and unexpected global catastrophe, I would like to be at 100% invested by the end of this week/beginning of next week. However, my desire does not aide in the proper opportunities presenting themselves.
SPNS is now a large position and deservedly so. I went into brief detail regarding the latest developments with the investment in my November month end letter to investors here.
WMIH has been a large position since I initiated in late July. In fact, the position in WMIH was increased in late October. Needless to say, following a 32% spike in WMIH thus far in December, portfolio performance has been outstanding.
The remainder of the portfolio consists of PXLW, PRXI, UPIP and PTGI. This brings net exposure to 85% long, with a measly 15% still awaiting allocation. I would be happy to add to PXLW, PRXI, UPIP or PTGI. However, the names need to show and prove a little bit more before I make additions.
That leaves me with no other option but to wait until opportunities become a bit more clear. I do believe in pushing the envelope, so to speak, with substantial up months, as a result of the flexibility the cushion in gains provide. A month of healthy gains is put to waste by the investor who attempts to protect those gains, as if it is the last time the market gods will smile upon them. Like anything else in the markets, you must utilize what you are given at that moment. Early gains during a month are a tool for aggression in the markets. Do not, however, confuse aggression with recklessness. Lots of casual and even professional investors make this mistake often, with less than desirable results.
On the other hand, when an investor is getting wrecked by the markets, you cannot be too conservative. I NEVER get aggressive into losses. I simply continue getting smaller as the losses increase. If they surpass a certain predetermined threshold, I liquidate everything, essentially hitting the reset button.
Real simple: Get aggressive when you are provided the comfort zone to do so. Get smaller when you have little room for error.
That's all you are getting out of me tonight.
