Quarterly review September: Q1 2018
So ends the second quarter of 10foot’s short life so far. On balance, I should have underperformed, given that I blew 4% of my capital on RNY Property Trust and lost a little bit on Thorn Group Ltd (ASX: TGA), plus I pay 3% in transaction fees, so I am behind from the get-go. The 10foot portfolio was …
Strong narratives: A source of competitive advantage?
One of the best things about investing is that you will draw on virtually all of your skills, knowledge, and experience at one point or another. I studied narratives at school, formally, as an academic pursuit. It sounds dry, and it kinda was, but it’s proven to be valuable in highly unusual ways. Try deconstructing a …
On Catalonia
The general view on Twitter and in the media seems to be that ‘Spain is grossly overreacting to the illegal Catalan referendum.’ Fair point. It is not a pretty picture. However, if we ask why Spain is overreacting, a different picture emerges: Autonomy Although a parliamentary monarchy, Spain is a decentralized nation composed of autonomous regions and cities. …
What is a synthetic subprime CDO?
Six months ago I was asked to explain what a synthetic CDO was. Well pal, the sky is blue because bankers in Wall Street…. I sort of did my best and drew a few diagrams and we got about halfway there and came to a halt. I understand roughly how a synthetic CDO works, I …
Q1 2018: 10foot is up 70% FYTD
As we prepare our upcoming quarterly review, we are pleased to announce that the 10foot portfolio has returned approximately 70% since last quarter and now has an unaudited total net asset value (NAV) of $16,830 versus an initial value of $10,000 at inception. There has also been a change in the structure of the fund, …
Through a Mayne Pharma, Concisely
I put 5% of the 10foot portfolio in Mayne Pharma (ASX: MYX). My purchase thesis was way too long to be useful to readers. I have created an abbreviated version here: Mayne is undervalued given its cash earning ability Performance in FY18 will provide a much clearer picture of the combined organisation’s (post Teva/Allergan portfolio acquisition) …
Purchase #7: Mayne Pharma Group Ltd
I’ve made another purchase for the 10foot portfolio, generic pharmaceutical company Mayne Pharma Group Ltd (ASX: MYX). Mayne manufactures and sells generics, consults for third parties, sells its own specialty branded drugs, and develops new formulations for existing molecules. Mayne Pharma recently had a huge step-change in its operations after the $900m acquisition of a portfolio …
The things that move share prices
I have recently been reading through well-known investing blogs like Bronte Capital (John Hempton) and Bristlemouth (Forager/Steve Johnson) from their beginnings in 2008 or so. They are very good. I read Hempton’s in its entirety a few years ago and I would recommend his earlier posts as an excellent crash course in how the truck …
The Gig Economy
Despite being financially comfortable and gainfully employed myself, one of the things I find myself becoming increasingly opposed to is the growing ‘gig-ification’ of work and/or what I see as the increasing abuse of workers (which are sometimes the same thing and sometimes two separate issues). So much has been said about this in the …
Sell #2: Sold Thorn Group Ltd
I’ve sold my stake in Thorn Group Ltd (ASX: TGA). Upon careful reflection, which I hinted at recently , I’ve lost confidence in my investment in the company. It’s not so much that things have changed, more that I think I was framing the investment the wrong way when I bought. I have also tied together …