Equity Portfolio Activity for the Week Ended June 24, 2016

Equity Portfolio as of June 24, 2016

Commentary: The market rallied higher during the week through Thursday which resulted in a market that was nearing an extreme in valuation. Accordingly, I added materially to various short positions on Thursday, even with the expectation that the BREXIT vote would fail resulting in Great Britain remaining a part of the European Union. To my surprise, the BREXIT vote succeeded which resulted in global market dislocations on Friday.

As Thursday night began to unfold the British Pound initially strengthened in anticipation of Great Britain staying within the EURO Union. It climbed to over 1.5 USD to the pound at which point I began to sell the GB short. By 11:00 PM on Thursday it was becoming clear that the tide in favor of BREXIT was winning and the markets began to fall. I closed the GBP position at a profit and trimmed the Volatility position taking in gains. As the market closed on Friday, I made the decision to hold a material position in various financial instruments that will benefit from further market turbulence and declines. I believe the equity market will continue to decline in search of a new lower point of equilibrium. Future decisions to close the positions that benefit from a market decline will be made in the coming days and weeks as market valuations move back in line with what I deem to be fair value and/or market internals indicate a change in momentum to the upside. Absent such changes, the volatility and short positions should prove to be rewarding.

Good Luck and have a great week!

New Additions

1. Morgan Stanley
2. Netflix Put Options
3. S&P 500 Put Options July 29 Expiration

Increase in Holdings

1. Proshares Ultra Short S&P 500
2. S&P E-Mini Short Futures Contract September Expiration

Complete Dispositions

1. None

Partial Decrease in Holdings

1. Proshares Ultra Short VIX

Overall Equity Portfolio holdings

1. Alamos Gold
2. ASA
3. Arm Holdings
4. Bank of America
5. Bank of America Preferred C
6. BB&T Corp
7. Brocade
8. Brookfield Total Return
9. Chevron
10. Con Ed
11. CISCO
12. Corning
13. Daktronics
14. Disney
15. Eastman Chemical
16. Endo Int’l
17. Ericsson
18. First Solar
19. Ford
20. General Electric
21. Golar LNG
22. GreatBatch
23. Greenbrier
24. Halliburton
25. Hecla Mining
26. Hershey
27. Ingredion
28. IROBOT
29. Jabil Circuit
30. JP Morgan
31. JP Morgan Preferred D
32. Legg Mason
33. Matson
34. Microsoft
35. MTN Group
36. New Gold
37. Noble Corp
38. Nokia
39. Nordic American Tanker
40. Norfolk Southern
41. Nucor
42. PayPal
43. Phillips 66
44. Pro Shares Ultra Short S&P 500 – Increased position
45. Pro Shares Ultra VIX Short – Decreased position
46. Qualcomm
47. Reaves Utility Income Fund
48. S&P E-mini short futures – Increased position
49. S&P 500 July Put Options – Opened New position
50. Sarepta Therapeutics
51. Square Inc
52. Synaptics
53. Ten Cent Holdings
54. Tessera Technologies
55. Tetra Technologies
56. Travelers
57. Twitter
58. Viacom
59. Wells Fargo
60. Yum! Brands

Author: Thomas Connolly

Tom possesses a rich and diverse background that includes deep investing experience, senior corporate executive positions, and roles as a Regional Managing Partner and Global Industry Leader within Ernst & Young. He has advised executives on some of the largest acquisitions and dispositions in the Media and Entertainment industry, including clients such as Comcast, Citibank, Sony, Dalian Wanda and Publicis. Tom is a Certified Public Accountant with a Masters Degree from Columbia University. His skills are further accompanied by a personal passion for the study of economic trends and evolving market dynamics.

Leave a Reply

Your email address will not be published. Required fields are marked *