The Special Situations Real Money Portfolio kicked off 2009 with a slow start. The ending balance on January 30, 2009 was $17,085.50. This is down 7.93% from where it was at the end of December. You would think that I would be concerned with that poor performance, but I am not.
I have several great special situations that are still working themselves out. In fact, just yesterday Meadow Valley Corp. (MVCO) announced the completion of its going private transaction. Shares of MVCO jumped 74.73% after hours on the news. I have 500 shares of the stock in the Special Situations Real Money Portfolio, so I expect this portfolio’s performance for the year to jump into positive territory when I am cashed out of this position.
I also have two other opportunities that will be closing soon. These include Puget Energy Holdings (PSD), NDS Group PLC (NNDS), and a small position in Emageon Inc. (EMAG). The only weak play I currently hold is Rohm & Haas (ROH).
Going back the Special Situations Real Money Portfolio performance numbers, since inception back in 2004 my overall return is 70.85%. Adjusting for new funds and the timing of returns, the IRR for this portfolio is a very respectable 19.65% at the close of business on January 30, 2009.
I am currently fully invested (only $24.08 in cash) and am waiting to be cashed out of a few positions in the next few weeks before adding news stocks. If you are interested in tracking my latest research and stock purchases, consider subscribing to Fat Pitch Financials Contributors Corner, my premium research service and investor community.
Disclosure: I own shares of PSD, MVCO, NNDS, EMAG, and ROH at the time of making this post.