The Special Situations Real Money Port performed quite well this past quarter. Year to date, the rate of return has been 35.7% IRR, an absolute gain of 7.3% year to date. That strongly beats the S&P 500, which has been up only 0.2%. Actually, my return might be a bit higher than I’m reporting if I assumed my shares of Halliburton (HAL) had already been exchanged for shares of KBR (KBR).
That’s right, the mysterious split-off I mentioned in my previous post was Halliburton. I purchased 99 share of Halliburton on March 13th and then I tendered my shares under the tender offer exchange for KBR. The tender offer provided a discount. For every $1 of HAL accepted for the exchange I would receive approximately $1.08 worth of KBR. I love discounts! On top of it all, odd lot holders (99 shares or less) will not be subject to proration. If I had bought more than 99 shares, I might have had only 40% of my Halliburton shares exchanged.
This past quarter I also sold 600 shares of Western Sizzlin (WSZL) for a 23.4% gain. I sold those shares for $10. The stock is now trading for $12.10, so I guess I missed out on some significantly larger gains. However, my reason for purchasing Western Sizzlin was to learn about rights offerings and that condition no longer exists.
Finally, I bought stock in a company yesterday that is going private, but I made a mistake. The terms of the deal require that you held the stock on the record date. I bought after that date. I didn’t spot that condition, so now I will be selling the stock shortly. Thankfully, I only invested a few hundred dollars on that opportunity.
Finally, my shares of Sally Beauty Holdings (SBH) is performing well. I’m up about 25% on SBH. I’ll be holding tight on this position until the stock hits at least $10.50 to $11.00. Then I’ll reevaluate the intrinsic value of Sally Beauty to determine whether I should sell or hold.
I’m holding $4,236.41 in cash out of my $10,221.14 portfolio. I have a few ideas of where I’ll invest that cash, but I’m also trying to be patient in case any amazing fat pitches come my way.