The Special Situations Real Money Portfolio continued to struggle in April. On April 30, 2008, the portfolio ended with a balance of $13,957.69. This is down from the March closing balance of $14,362.01. Year-to-date, the portfolio is down 12.58%. However, the overall return is a positive 39.58%. On an annualized basis, the Special Situations Real Money Port had a 16.29% internal rate of return since inception (as of April 30, 2008).
The only transaction in April was the tendering of 80 shares of Sybase (SY) in this account. This was an odd lot tender offer where holders of less than 100 shares would be completely cashed out in a modified dutch auction with a price range of between $28.00 and $30.00 per share. The final tender price was $28 per share, so I received $2,240.00 in cash on April 17, 2008 for my shares. Since I bought the shares for a total cost of $2045.35 on March 17, 2008 and there was a $25 tender fee by my broker, I made a total profit of $169.65. This comes out to a 8.3% return, which means this deal produced a 97.7% average rate of return for this one month investment.
If you are interested in other opportunities like the Sybase tender offer, subscribe to Fat Pitch Financials Contributor’s Corner. Contributor’s Corner in a premium online community and database packed with special situation opportunities. You’ll also be able to review the complete current holdings of the Special Situations Real Money Portfolio and its full transaction history.
Finally, I’m happy to report that the Special Situations Real Money Portfolio has improved dramatically so far in May. As you may have noticed from the live portfolio performance reported in the sidebar, the portfolio is now only down 5.59% year-to-date and will likely move into positive territory again for the year when I receive cash for a going private transaction that recently completed. I’ll let you know at the end of the month how things turned out.
Disclosure: None of the stocks mentioned in this post are currently held.