Saturday, 7 March 2015

Trades I have undertaken in the last week

Well that was an interesting end to the week on the global bourses.  As shown below Friday saw a bit of a sell-off...

...hardly a great surprise I would suggest given - as I mentioned in my latest Yahoo Finance Contributors article here - the recent downward revisions of S&P 500 FY 15 earnings growth (which is still stuck at a wholly unimpressive 1.7%).  Fascinatingly the Financial Times picked up an element of this in today's newspaper with the observations that:

Elsewhere in Europe, the clear kicking the can down the road antics in Greece is so clearly going to come back to haunt European policy makers.  How long before another round of crisis summits?

As for hopes of a clear Euro zone economic recovery...well let's just say that I perceive high optimism towards this as being somewhat mis-placed.  It is rather pathetic to say that the 2008 economic activity highs have still not been taken out. 

 So a difficult and not easy backdrop...which naturally drives caution in stock picking activity and general portfolio exposures.  Two trades of note in the last week.  I did top-slice Smith & Wesson after its stellar post results run (link here).  Meanwhile I did introduce Rexam into my portfolios in the hope of a one-sided merger arbitrage profit as discussed here.

Both my main portfolios continue to add value in March - and the small net short positioning of my hedge fund portfolio was clearly a-tuned to the Friday move.

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