October was a rather boring month for the Special Situations Real Money Portfolio. After the liquidity crunch in August from the blowup in the sub-prime mortgage market, tender offers have largely disappeared and going private transactions are scarce.
The Special Situations Real Money Port was slightly down in October. This account closed October with a balance of $12,993.11. In September, the portfolio ended the month with $13,136.48, so I’m actually down $143.37 in October. You can track the current balance of the Special Situations Real Money Portfolio in real time by looking at the left sidebar on Fat Pitch Financials.
Regardless of the slight decline in balance in October, as of October 31, 2007, I’m up 36.34% since the beginning of this year. Since inception, I’ve earned a 25.4% internal rate of return (IRR). I’m very happy with that long term performance, and hope to maintain it.
In terms of transactions in October, there are only a few things to report. I tried to get in on the Western Sizzlin Corp. (WSZL) rights offering this month, but
I bought the stock too late and missed out on receiving rights. I also bought a tiny reverse split that you can find out about if you subscribe to Fat Pitch Financials Contributor’s Corner. I’m also still holding Sallie Beauty Holdings (SBH). That stock is still treading water.
The majority of the Special Situations Real Money Port is in cash, $7,198.24 to be exact. It was a boring month for deals. Hopefully, there will be better opportunities to deploy cash in the near future.