The Special Situations Real Money Portfolio has had another great month. The April Special Situations Real Money Port was up 7.3% for the year and had an annualized rate of return of 22.7% since inception. The May numbers are even more impressive. The Special Situations Real Money Port is now up 16.4% for the year and the annualized rate of return has rocketed up to 27.8%.
Let me recap the trades in the Special Situations Real Money Port this month. I took the cash I received for my MAXCO Inc. (MAXC) shares, and I used it to purchase 99 shares of Tribune Co. (TRB) at $32.76 per share. Tribune announced a tender offer that provided odd lot holders with a preference in the case of any need to prorate the tender offer. My shares were tendered for $34.00 on May 24th and I’m waiting to receive the cash for this nice odd-lot tender offer.
On May 2, 2007, I sold all my shares of Premiere Global Services (PGI) for $12.65 per share. I had bought those shares previously on April 24th for $11.97 per share. This was a nice quick 5% gain. This tender offer was suppose to close on May 24th, but luckily I had a limit order in for the tender price of $12.65 and my limit was triggered early on May 2nd, thus saving me a $25 tendering fee.
I also bought 85 shares of Navigant Consulting Inc. (NCI) on May 10th for $20.65 per share. I would have bought 99 shares of this stock, but I ran out of cash in the account. This tender offer will be closing on June 7th. The dutch auction for this tender has a minimum price of $19.50 and a maximum offer price of $22.50. Hopefully, the offer will come in at the high end of the range.
The most significant change this month has been the rapid appreciation of my KBR Inc. (KBR) shares. My original investment in Haliburton (HAL) before the split-off of KRB was $3,174.95. My KBR ended the month of May valued at $4,322.21. That’s well over a thousand dollar gain so far. I’m considering locking in these gains with a stop order soon.
The bottom line is that the Special Situations Real Money Port ended the month of May with a balance of $12,239.27, of which only $28.66 is in cash. If you would like to see the breakdown in all my current holdings and the complete history of the Special Situations Real Money Port, you can subscribe to Fat Pitch Financials Contributor’s Corner. The subscription will also gain you access to all my research in current going private transactions, odd-lot tender offers, and other special situation opportunities.