ARC bought

It feels that I may have tempted fate with the comment in my last post that I don’t think we are yet at a point where the quality momentum trade will start underperforming. Pretty much as I was writing it, the US stock market experienced a mini ‘momentum-crash’, as investors rotated from high growth stocks to cheaper plays. This may have been a one-off but it has given me pause for thought. Continue reading

Short attacks!

I wasn’t intending to write a post this week as I am still very busy with other engagements at the moment. However, after the dramatic short attack on Burford Capital last week, which until quite recently had been one of my largest positions, I’ve decided to record my thoughts and a number of recent trades. Continue reading

Portfolio review: July 2019

It was inevitable that equity markets would lose some steam after the spectacular bounce in the first quarter. The second quarter has been more volatile as the conflicting narratives of impending recession and indefinitely continuing low interest rates play out, though overall the markets have continued to make progress. After a fantastic April, my portfolio has been slowly and steadily inching forward over the last couple of months. Continue reading

Is small beautiful?

I can only post fairly infrequently at the moment as I have a lot on my plate, what with planning our DIY summer wedding and simultaneously embarking on the most important work project of my career so far. It’s been a lot harder to make time for the blog. I do intend to keep it running, but at a slower pace for the time being.

A recurring issue I’ve been grappling with recently is whether I should be trying to shift my focus more to smaller businesses. Instinctively, it feels like the smaller cap space should be a more productive hunting ground for a small private investor like me. I’d expect small caps to be less well researched and the markets more illiquid, giving greater scope for shares to be mispriced. On top of that there should be greater scope for growth when you start from a smaller base. However, in practice I’ve found that identifying high quality is much harder in the small caps space. Should be trying harder? Continue reading