In spite of a weak finish to HY markets, I managed to beat the index (I used ASX:VAS to benchmark my performance) again, with a return of 9.19% vs the index return of 0.51%. This brings my cumulative YTD returns to 22.66% against a benchmark of 3.25%.
DDR fell significantly after a major run up, but I saw 20-25% increases from FMG, KGN, and WEB, who have been unfairly beaten down by the market and have bounced back on takeover rumours.
I made 2 trades – reducing my exposure to KGN and DMP, shares I both felt I was overweight on, and freeing up capital for new ideas. With markets at heady heights I reviewed my portfolio and decided where to make reductions.
TCL, DXS and the Vanguard ETFs are all long-term holds for me.
FMG is still very cheap on current earnings, and I’m not heavy on it. WEB is still good value, and I’m comfortable with my percentage in REH – they are a premium stock but have a lot of hard-to-quantify upside and are run by the owners. DDR are also owner-run and extremely capital-efficient. I sold down a chunk in Q1 and am happy with current levels, though I may get out completely if it gets closer to $10.
The portfolio is currently 16.5% cash, and I’m on the lookout for new ideas.