Portfolio update 10/21/16

I’ve had an exciting month. I had two positions rise ~20% on the same day, Twitter (TWTR) and Bats Global Markets (BATS). I’ve also had two significant positions, American Express (AXP) and PayPal Holdings (PYPL) rise ~10% last week week. Those big moves were partly offset by underperformance in my two largest positions Gilead Sciences (GILD) and Under Armour (UA).  Nevertheless my Alpha has increased to 2.35% from 0.8% last month. Here’s a chart showing that:

screen-shot-2016-10-21-at-6-03-19-pm

In the last two weeks I sold Chipotle Mexican Grill (CMG), Costco (COST) and CSX. I just realized they’re all C’s, I hope I’m not falling victim to some alphabetic bias. Anyways, as much as I like Chipotle as a consumer, I cannot stomach holding the stock at its current valuation. I’ve noticed a strong stigma with the name and I do not see large positive catalysts coming in the near future.

CSX trades at fair value. The P/E ratio has increased 45% since I bought it. Amazon was always a threat to Costco’s business model. The market is beginning to see that too. I predict Costco will trade at more sober multiples going forward.

I’m very excited about my three new positions: Illumina (ILMN), Scotts Miracle-Gro (SMG)  and Nasdaq (NDAQ). Illumina and Nasdaq were on my watchlist for a long time. I used recent volatility to finally enter. I bought ILMN at $136.60/share, SMG at 86.82/share and NDAQ at $65.70/share.

Here’s my portfolio as of close on 10/21/16:

screen-shot-2016-10-21-at-6-17-42-pm

Return since inception (Beginning of 2015): 9.12%

Outperformance vs. dividend adjusted Vanguard S&P 500 ETF: 2.35%

beta: .71

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