PORTFOLIO UPDATE: ROTATION STATION
During the trading yesterday, I tweeted the following:
The decision to reduce exposure here is more opportunistic than it may seem. Although my first concern is controlling risk in the portfolios, the opportunity to own technology into what I think we will be an explosive Q4 rally will become too good to pass up in the weeks ahead. While I am bullish on both HMPR and SBCF for the long-term, I question whether financials will be able to match technology in terms of upside into year end. Both SBCF and HMPR are now small positions (less than 10% of total equity each) in the portfolios.
As it stands currently, exposure is at 75% invested with 25% in cash. WMIH, CIDM, EVOL, SBCF and HMPR are the fab 5 holdings for the time being. I expect to add 2-3 more holdings into this mix before October is out, with the prerequisite that the market stabilizes, of course.
Been traveling since Saturday and just got back last night. A ton of catching up to do. I'll be posting detailed analysis on where I think the markets are headed during the weekend.
