Special Situations Real Money Portfolio Year End Rally

The Special Situations Real Money Portfolio made an amazing year end rally. I’m proud to report that my portfolio closed 2008 out with a 16.34% return for the year. I’m popping the champange corks here at Fat Pitch Financials headquarters.

The year end rally was primarily due to news that Puget Sound Energy’s (PSD) sale to a group of investors from Canada and Australia was approved by the Washington Utilities and Transportation Commission. The buyout, lead by Macquarie Infrastructure Partners, is for $30.00 per share in cash. Given the regulatory approval, the deal should close very soon. The market bid shares of PSD up to $28 on Wednesday, but the stock sold off to $26 by mid-afternoon on December 31st. I picked up some additional shares of PSD in a few other accounts outside of the Special Situations Real Money Portfolio, and I’m hoping members of Fat Pitch Financials Contributor’s Corner were also able to take advantage of the situation after I gave them and my Twitter followers a heads up on the opportunity.

The Special Situations Real Money Portfolio also held shares of Rohm & Haas Co. (ROH), Meadow Valley Corp. (MVCO), and Western Sizzlin (WEST), all of which rallied this past week. At one point I wasn’t sure the Special Situations Real Money Port was going to be able to end in positive territory because of the bad news regarding Dow Chemical’s (DOW) $17.4 billion Kuwaiti deal being called off and its potential impact on Dow’s acquisition of Rohm & Haas. When shares of Rohn & Haas dropped to around 50 this past Monday, I was really disappointed that this hit was going to sink the performance of the Special Situations Port for the year.

Thankfully, the rally on the last day of the year sent the Special Situations Real Money Portfolio total balance up to $18,556.80. The total return for the portfolio since inception on October 19, 2004 is now 85.57%. This bring the IRR since inception up to 23.54%. I hope to provide some more year end details regarding the Special Situations Real Money Portfolio shortly. If you want to review all the trades of this portfolio and my special situations research, subscribe to Fat Pitch Financials Contributor’s Corner.

One thought on “Special Situations Real Money Portfolio Year End Rally

  • January 2, 2009 at 2:57 am

    Wow that is an excellent performance. Glad to see you made out of 2008 on such good terms.

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