Put in $1000 to cover my margin balance. This would allow me to earn some income from stock lending. I have been taking advantage of the $1000 margin interest free for a while, and now I think my account value is large enough that I don't need to care about this small leverage anymore. Hence, I also disabled margin for my account.
My portfolio has recovered substantially since my last update. Alternative asset managers bounced back nicely from the lows, with OWL increasing over 20% from the trough of trading at $7.95 on April 2nd. That being said, there is still a long way to go to my cost basis of around $13.5 per share, let alone my fair value of at least $20 per share. There is not much news, except that Blackstone successfully closed a $10 billion private credit fund (source), Ares targeted a small $20 billion private credit fund launching in summer (source), Blackstone BCRED sold $450 million private credits CLO (source) upsized from $400 million due to excess demand, and Pimco bought all $400 million Blue Owl Capital bond at 6.75% interest rate due in 2028 (source). The calm and normal default rate from private credits ensure the sentiment is not getting worse, more details in GFC 2.0 - Or A Golden Buying Opportunity? What The Data Says Is Really Happening In Private Credit.
My portfolio IRR flipped a hypothetical SPY-only portfolio after trailing for a little bit. While my alternative asset managers bet (~45% of the portfolio) has yet to pay off enough, the tech companies in the portfolio (~30% of the portfolio, mostly consisted of AMZN, META, TSM, NVDA) performed very well to help me beat the market.
For the US-Iran war, while disagreements remain on how much enriched uranium can be kept by Iran, how much enriching capacity they can retain, and the control of Strait of Hormuz; the worst of the war is over (latest update: Iran says Strait of Hormuz is closed again as vessel attempting to cross comes under gunfire). The oil price came back down over 20% from the peak. There is light in the tunnel. I hope the war will end soon.
Pershing Square just kicked off the roadshow for its PSUS IPO a few days ago (news). For every 5 shares of PSUS purchased through IPO, the purchaser would get one share of PS (Pershing Square management). While I am a Bill Ackman fan, both the fund (Pershing Square USA) and the management company have a huge key man risk. PSUS is expected to trade at a substantial discount to NAV given the 2% annual management fees and that's what is happening for a similar fund trading in the London Exchange. I may initiate a position in PSUS when it starts trading on NYSE, or maybe just keep adding in HHH for my conviction in Ackman. It depends on the discount to NAV.
Transactions
Recent and upcoming dividend distributions
Portfolio performance snapshot
Total return:
One-year return:
Portfolio IRR (calculation): 18.42%
Approximated IRR for an SPY-only portfolio: 18.16%
Individual holdings:
Breakdown by categories (real-time):
Total returns for individual holdings:
Last prices:
Portfolio holdings conviction
The convictions in the table below reflects my current opinions and will guide the future contribution of additional investment to existing holdings. Stocks not inside the table are stocks with subpar return on equity that will be very unlikely to receive more contributions from new money (there can be exceptions for very cheap stocks).
Conviction in long-term prospects means how much I believe a company would match or outperform the market (e.g. S&P 500) in the long run. Valuation matters so the conviction generally corresponds to the neutral rating of Valuation. It has the following ratings: weak, moderate, strong
Valuation: greatly overvalued, overvalued, slightly overvalued, neutral, slightly undervalued, undervalued, greatly undervalued
