It's end of quarter - high time for a portfolio update.
The main changes in last 3 months are increased stakes in VRX, KORS and GILD as well as reducing APPL and EPOL.
The motivation for the latter is mostly to take profits. I rode a decent chunk of Apple's ride and I am happy about that. Polish stocks also gained and I was happy to lock profits. But for both, I think the upside is much more limited now.
VRX, KORS and GILD all saw stock price declines and I decided to double down on all of them. I don't see (further) deterioration in the underlying businesses there.
For Valeant, specifically, there were multiple developments that are clearly positive to me, still the company's stock price declined. Asset sales, refinancing debt far into the future on reasonable terms and very conservative guidance bode well for the future. Ackman's departure does not bother me, it perhaps makes sense for him to get the tax loss now and move on. Managing other people's money is a though business. Latest valuation from Aswath Damodoran strikes me as very negative. Especially in the context of large Bausch and Lomb segment, rising overall inflation and and conservative guidance (quickly recognizing end of life, not counting on new drugs). I see this as 'public LBO' and happy to take part in it, with debt cost of ~7% - less than home run Heinz deal! I have large stake now in Valeant now, though, so I may well be subject to confirmation bias.
My story for GILD and KORS is largely unchanged - solid cash flow that is underappraciated by growth-seeking investors. I only wish they buy back more of their own stock.
Finally, I still think TSLA is overvalued, but recent 5% stake from Tencent convinced me to not bet much on TSLA's decline. Even though I don't see it making it, there are many people with deep pockets that can support the stock price.
Main holdings
remaining holdings
