Special Situations Real Money Portfolio Summer 2009 Update

It’s been a few month’s since I’ve last reported on the performance of my Special Situations Real Money Portfolio. The Special Situations Real Money Portfolio ended the month of June with a record balance of $23,579.28.  By the end of July, that account balance increased to $24,563.65 and by the end of August, the Special Situations Real Money Portfolio climbed to $25,602.10. That’s a nice steady climb, which is rather unusual for the Special Situations Real Money Portfolio.

At the end of August, the portfolio was up 8.6% since the end of June.  Better yet, the Special Situations Real Money Portfolio was up 38.0% year-to-date on August 31, 2009. That crushes the S&P 500 year-to-date total return of 14.97% over the same period.

Looking back at the portfolio’s performance since inception on October 19, 2004, the Special Situations Real Money Portfolio has produced a total return of 156% as of August 31, 2009.  The average annualized return since inception is now an amazing 29.62%. Given the devastating market collapse of 2008-2009, I can now confidently say that the Special Situations Real Money Portfolio has been the most successful financial experiment of my life. This experience has altered my outlook on investing.

Let’s take a look at some of the transactions that took place this past summer. First, I bought 99 shares of Greenville Federal Financial Corp. (GVFF) at $4.90 per share on July 9, 2009. The company plans on going private through a tender offer. On July 16, I turned around and sold those 99 shares for $6.45 per share. I made a quick $139.53, a 28.3% return on that eight day investment.

Next I picked up 499 shares of Collectors Universe (CLCT) by accident on July 13, 2009 for $4.52 per share. This purchase occurred after the tender offer expired, and shares of CLCT have traded down to $4.10 right after I bought the shares. I forgot to lift a limit order I had placed several weeks earlier to purchase Collectors Universe. It was a careless mistake. On July 28, 2009, I sold 100 shares of Collectors Universe (CLCT) for $4.25 per share and then on July 31st I also sold the remaining 399 shares for $4.25 per share. All told, this little mistake cost the Special Situations Real Money portfolio $155.65. The return on that botched move was -6.9%.

On July 20th, I sold 2,000 shares of En Pointe Technologies (ENPT) for $2.38 per share. After that trade, I still had 3,000 shares of ENPT in the portfolio.  On August 11, 2009, I received $7,500 for the remaining 3,000 shares of En Pointe Technologies (ENPT). I got the expected $2.50 per share cash out for the En Pointe Technologies. I originally bought these 3,000 shares of En Point Technologies on March 31, 2009 for $2.06 per share. My total profit from this transaction came out to $1,320. That’s a nice 21.4% return for this straight forward going private transaction merger.

I few new developments occurred earlier this month. I’ll update you on those transactions in early October. If you want to know what those transactions were and want to see my current holdings, I recommend that you subscribe to Fat Pitch Financials Contributors Corner. A subscription to Contributors Corner will also gain you access to my current special situations research, the archives of all the past deals covered, and the intelligent community discussion among current members.

Disclosure: I no longer own shares of Greenville Federal Financial Corp. (GVFF), Collectors Universe (CLCT), or En Pointe Technologies (ENPT) at the time of publication.

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