Special Situations Real Money Portfolio 2008 Mid-Year Report

Last week I forgot all about updating you on the status of the Special Situations Real Money Portfolio. Sorry about that.

I was real busy last weekend installing a new subscription payment system for Contributors Corner. I was so focused on that project that I put just about everything else on hold. The good news is that I’m done with that project, and the new more automated system should help me save time in managing the subscriptions at Fat Pitch Financials Contributors Corner.

As you might recall, the Special Situations Real Money Portfolio ended April with a balance of $13,957.69.  On June 6, 2008, the portfolio closed with a balance of $15,481.04. That’s an increase of $1,523.35 in just over a month, which comes out to almost an 11% increase in the portfolio’s balance since the end of April. No new funds were added this past month, but I did receive cash from the Jaclyn odd lot tender offer.

There were actually a few new positions added recently. On May 27th I added 500 shares of a preferred stock. This company is proposing the buyout of these preferred shares in order to refinance their debts. On June 2nd, a new tender offer with an odd lot provision became available. I quickly added 99 shares of this hotel REIT. In a few weeks, I should also be cashed of this position and hopefully I’ll make a bit of profit along the way. Finally, my 99 shares of Loews Corp (LTR) have been tendered, and I should receive new shares in Lorillard (LO) on Tuesday, June 10th or shortly there after as a result of this split-off. I’ll be writing more about this split-off shortly.

The year-to-date return for the Special Situations Port is -2.94% as of the market close on June 6th. The recent recovery of the portfolio has helped to once again boost its overall internal rate of return to over 20% (20.5% to be exact) since inception. The total return for this portfolio is 54.8%, so it looks like my son’s Coverdell Educational Savings Account is still on track to continue its amazing market beating performance.

If you would like to review all my current holdings and get updated on the latest special situation opportunities that I discover, consider subscribing to Fat Pitch Financials Contributor’s Corner. Rates are going up on June 13th to address inflation, so be sure to lock in the very low subscription rates today by getting a year long subscription.

3 thoughts on “Special Situations Real Money Portfolio 2008 Mid-Year Report

  • June 9, 2008 at 5:35 am

    G – 54.8% return? Wow. Many congratulations in order. Great website!


  • June 9, 2008 at 7:24 am

    Hi Phil,
    The 54.8% total return for this small portfolio is correct. The key to this portfolio is my focus on exploiting opportunities where the small investor has the advantage. I’m proud of my returns, but I’m no where near the Buffett benchmark of being able to generate 50% annualized returns for a portfolio smaller than $1 million. I’ve made several mistakes along the way and I still have a lot of learning to do.

    Regardless, thanks for the congratulations. I never dreamed that my experiment that I started in 2004 would turn out this well. If you are interested in my portfolio, I encourage you to go back to the first post about the Special Situations Real Money Portfolio that I wrote back in October of 2004.

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