THE SHABU PORTFOLIO
Sup! After being busy for the past few months, I’m now back in action. Before we start, let me just tell you bout some changes:
First. I am now focused full time into trading for myself and fund-management for clients. I can now move more actively and aggressively in the market if I choose to do so. Before, I could not play quick trades because I was so caught up with my job and other responsibilities.
Second. I won’t be showing portfolio values anymore, since capital has increased vs the amounts handled in my previous blog posts. And laganap ang mga kidnapper. lol
Third. After spending several years in the SHABU LAB, I am now a more systematized trader.
Global equities are hovering around all-time high levels. If you read in my earlier posts, I was mostly bearish entering the year, but I didn’t let my opinions interfere with what the market was showing. Factoring in all the QE/money printing bull shit all around the world, one can get scared with all the excess. However, the craze is still on and markets all over the world are showing they ain’t scared.
You can say people are probably getting complacent, but as a trader we just follow the money and listen to what the market is saying.
Opinions won’t make you money, trading on the right side will.
This quote is very relevant nowadays since we have lots of people in social media sharing views, analysis, hypes, bull shits and what not. If you see a super comprehensive, logical, fundamentally sound analysis / opinion from a veteran, think twice before betting your balls.
LEARN TO BE INDEPENDENT, always take responsibility for your trades.
At the end of the day the market dictates which views are relevant and which ones are trash.
Even if I had a bearish view I was almost always 100% in terms of portfolio exposure, it did not matter to me since I was focusing on low-beta plays. I wasn’t able to ride market leaders DNL and NIKL, but I found other ways to make money. Since I thought that the index sucked, I focused on mining–which built up 50% of my portfolio before I started trimming on rallies.
Here’s a glimpse of my port on Aug. 13, 2014 (I have trimmed already at this point)
Why the f*ck Mining?
Mining was clearly one of the leading sectors this year.
Since I wasn’t able to hold NIKL, I focused on its brothers. Many people were selling because of the suspension. Good thing my signals were telling me otherwise. I was overweight this with about 1/3 of my port. Again let me emphasize: Opinions won’t make you money.
I sold most of it at 6.80-7.20, before it crashed back to 6.00, I wasn’t able to buy back, so I bought $ORE instead LOL
Been accumulating this since 9+, then added on breakouts of 10-11. if you look at my port my avg price would be high already since I tripled my size at 11+, because it looked like a high probability 12. It did go there, and I threw most at 12.50 on the way down.
As for MWC
Since I was mainly bearish, I didn’t want high-beta names. I stuck with this for 5 months. Sold at 29.50 downwards. Good thing it’s now back to 28!!! wooo! I almost thought it would breakout of 30.
These were the main plays of the Shabu Portfolio that made me money in the month of August.
Again, I was trading the whole year with a bearish view, but because my signals were telling me otherwise… I looked for ways where I could get exposure to strong names that had stories of their own or had low correlation to the common shit that fundies hold.
August was a generous month. I am quite thankful that the SHABU PORTFOLIO is at ytd highs, and is currently doing more than double my benchmark’s performance. I have also beaten my 2012 ytd, considering that I’m trading a bigger size now–not bad.
September may be more challenging.. yet more interesting. I saw something that made me decide to implement a different approach moving towards the “ber” months.
You can check it out on my next post. (Link to be inserted here)
This blog aint a reco to buy or sell shit. This blog is mainly my journal meant for sharing, and entertainment purposes. Don’t take everything too seriously. Wag nyo po ako susumbong sa PDEA.
Charts are provided by: http://investagrams.com/
Feel free to subscribe if you want to follow what’ll happen to the SHABU PORTFOLIO.
Sa mga chicks or for those who have queries, questions, suggestions, trashtalks, you may hit me up on my facebook account.