Five Trades in the Long/Short Portfolio

Five Trades in the Long/Short Portfolio

March 05, 2021 - 2:22 pm

The past month we've lagged in performance in this portfolio against the market and we're dumping some of our lagging positions.  We are closing the Short in LL for a nice gain of 24% by purchasing back our short shares at $23.55.  We sold Bloom Energy at $26.60 for a loss of 9% on that position.

We're adding 3 new positions:

- Long shares of HMHC (Houghton Mifflin) at $6.14 for a 20% allocation with 3250 shares.
- Long shares of VWAGY (Volkswagen) at $25.76 for a 20% allocation with 776 shares.
- Short SFIX (Stitch fix) at $71.92 for a 20% allocation with 278 shares sold short.

SFIX reports earnings in a few days and we're bearish on their fundamentals. Shares of VWAGY and HMHC appear technically bullish, and automakers are on a tear with momentum building.

The new portfolio looks as follows:

Total Invested $100,000              
Current Value $100,256              
Gain/Loss 0.26%              
                 
Position Weight Entry Date Shares Entry
Price		 Current
Price		 Position Cost Position Value Gain/Loss %
CASH 1%         $1,072.02 $1,072.02  
DKNG 6% 1/1/2021 106 $47.00 $59.52 $4,982.00 $6,309.12 26.6%
MSFT 15% 1/1/2021 67 $222.53 $231.60 $14,909.51 $15,517.20 4.1%
PENN 13% 1/1/2021 117 $85.26 $108.23 $9,975.42 $12,662.91 26.9%
MRNA 12% 1/1/2021 93 $107.23 $132.19 $9,972.39 $12,293.67 23.3%
USO 11% 2/22/2021 242 $41.30 $44.44 $9,994.60 $10,754.48 7.6%
FCX 9% 2/22/2021 259 $38.58 $35.02 $9,992.22 $9,070.18 -9.2%
QCOM 13% 1/1/2021 98 $153.01 $129.75 $14,994.98 $12,715.50 -15.2%
VWAGY 20% 3/5/2021 776 $25.76 $25.78 $19,989.76 $20,005.28 0.1%
SFIX -20% 3/5/2021 -278 $71.92 $73.00 ($19,993.76) ($20,294.00) -1.5%
HMHC 20% 3/5/2021 3250 $6.14 $6.20 $19,955.00 $20,150.00 1.0%
TOTAL 100%         $95,844.14 $100,256.36 0.26%
                 
            S&P Year to Date Return 4.02%
  Short Position         Dow Year to Date Return 4.52%
            Nasdaq Year to Date Return -0.20%
                 

We're committed on FCX even though we're down 9%, it should rebound in time and we'll be patient on this position. QCOM may have to be sold if we don't see a pickup in the share price, the 5G refresh cycle should provide a floor on this stock.