Exciting week

It was an exciting week full of trading updates and results for most of the shares in my portfolio. I’m pleased to say it turned out very well and the portfolio has rocketed back up to new highs. I made quite a few trades, selling out of three holdings, reintroducing two I sold recently and adding to a number of holdings on positive trading updates.

There were trading updates or results for six companies in my portfolio, all of them positive. Games Workshop, Fevertree, Burford Capital and Keywords Studios all shot up on excellent news and I added to my holdings. Abcam issued an in line statement and continued a slower paced advance. As a result my portfolio went up by 6.6% this week, the best weekly result I can remember having for a while. So I’m feeling quite chuffed and glad about my decision to concentrate the portfolio.

Just Eat issued what looked like a positive trading statement with revenues ahead of expectations, causing me to add to my holding. However, the market was clearly expecting more and the share price plummeted, forcing me to sell out soon after for a two per cent loss.  I can’t really explain this one and I still like the business but I’m sitting out for now.

I also sold out of Best of the Best for an 11% loss. The share price fell the day after I bought it, despite the recent positive trading update, and I’ve been holding for a couple of weeks waiting to see whether it might rebound but decided probably better to just take the loss and move on. That is the danger in investing at the more illiquid micro-cap end of the market. I suspect my momentum based strategy doesn’t work so well here and a better way to exploit the illiquidity may be to buy the dip. I’m going to be a bit more wary next time.

I also sold Focusrite for an 8% loss, only a week after buying as the price momentum didn’t hold up.

I reintroduced holdings in Boohoo and RWS Holdings at the end of the week. Both have issued strong recent updates and are showing strong momentum. I’ve written about them before here and here, so I won’t write about them again here.

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