May 19 - Portfolio & Networth Update

Publish date: Thu, 30 May 2019, 06:31 PM

No.	Counters	No. of Shares	Market Price (SGD)	Total Value (SGD) based on market price	Allocation %
1.	Vicom	31,300	6.59	206,267.00	23.0%
2.	Netlink Trust	236,000	0.83	195,880.00	21.0%
3.	Far East Hospitality Trust	3,000	0.64	1,920.00	1.0%
4.	Ho Bee Land	300	2.36	708.00	0.1%
5.	Warchest			513,510.00	55.0%
Total				918,285.00	100%

Sell in May and go away.

This month has been a brutal month as we see increased risk volatility in the market due to the US-China trade war, which pushed most major indexes and sectors down.

STI is now back to the 3,150 level, which I deemed as attractive. Still, it can always go lower for as long as the risk remains.

You can see from my portfolio that I made more sell than buy transactions during the month.

It was done as part of the strategy to be nimble as I was almost fully invested in the previous month, since there are other more interesting sectors to watch out for and I wanted to take on a more risk-on attitude with some sectors dropping near my target buy level, such as banks.

The first thing I sold was First Reit, which I divested in full at $0.98 after the company went ex-dividend (I will be entitled to the dividend). This was a recent purchase which I made not too long ago back in March so the ROI on this is a slight gain, almost flat if you consider the commissions in and out.

I also divested my biggest holding in Starhill Reit at $0.75, again after the company went ex-dividend (I will be entitled to the dividend) as part of my strategy to conserve cash and go risk-on mode on banks sector later on. Like First Reit, this divestment was not a fundamental issue with the company but an overall balancing strategy with the situation going on, and thus a decision was made.

I also divested my recently purchased holding for Keppel Infra Trust at $0.47 for the same reason, hence I won't repeat it again.

Last but not least, I had also divested all my holdings in The Hour Glass on the immediate day after they announced their full year results. In fact, earlier this month, I managed to double up my position on THG but the full year result thesis did not work out as expected.

Nevertheless, I will share my compilations of research on THG in the next posting for future reference which I will continue to keep a close look out on.

With most divestment, my portfolio is essentially left with Vicom and Netlink Trust as the two major holdings, with Far East Hospitality Trust and Ho Bee Holding taking up consolation third and fourth places.

Warchest has gone up drastically, and now suddenly I am looking at influx of cash amounting to 55% of the overall portfolio.

Since I am closely eyeing on banks and companies like Genting and HK Land, which I previously shared, I am sure the capital will be allocated sooner than expected, especially if the Trade War escalates.

Networth Update

The portfolio, while defensive in nature, did not survive the onslaught from the Trade War as it sees a dip this month.

The overall networth of the portfolio dropped from the previous month of $932,505 to $918,285 this month (-1.5% month on month; 27.3% year on year).

The portfolio shed around $14k in value overall.

This also means that my trend of 16th consecutive record increase month on month is also broken, ending the momentum this month.

In terms of returns year to date, the portfolio is still beating the index by a margin so I think the overall impact drop in index is more felt than the drop in the portfolio.

I guess there is no need to hit the panic button just yet.

When the US and China sneeze, you can't help but catching some sort of cold regardless how defensive your portfolio is.

But this also spells for opportunity in the market to capitalize when you see some mispricing that happens.

I hope that opportunity will come soon, and I will be sure to be on my alert to capitalize on it.

Thanks for reading.

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