James,
I've done some reshuffling as well. The sealpoint portfolio is
now about 25% cash, and that cash will be used to pay off
a 9% mortgage. Once that's paid, the portfolio will be
100% invested again. What did I sell? Swisher, Pacificare,
Medusa, and ALR. Swisher and ALR are tax loss partial offsets for
the profits in Pacificare and Medusa. If I was bullish on the
market, I wouldn't play this game. I hope to buy back Swisher
and ALR cheaper.
Another portfolio is now 23% invested in the Prudent Bear Fund.
It rose nearly 11% on October 27th, and "The Bear Book"
brought it to my attention. This portfolio is
the one that is short Nike, and long Ciena and HP along
with Deswell, Telebras, and St. Joe. I'm looking at the
best way to take a 10% Asian position in this portfolio as well,
knowing that Telebras and Deswell move with Asia.
I invested in APF when it looked cheap at 10, and got out
around 9 5/8 thankfully. So I'm a bit burned on it. Also,
Barton Biggs touted the Fund in his roundtabe, while it
turns out that some Morgan Stanley funds were actually
selling it.
It's nice the market has given
us this extra cushion by running up so high - I've been
fully invested the last 4 months - but now it certainly feels
like time to take some equity off the table.
Mike |
