Equity Portfolio Activity for the Week Ended May 27, 2016

Equity Portfolio as of May 27, 2016

Commentary: The market whipsawed me and it was not fun. I closed and or reduced a number of long positions with the expectation that the market would and will decline, and took on positions that would profit from such a decline. It is an expensive market, and expensive markets resolve themselves through unanticipated higher revenues and earnings or through price declines to bring equilibrium between economic returns and price to own those returns. I expected price declines and they did not come, and I underperformed the market as a result of the short side investments I made and the decline in price of the Gold miners as the precious metal fell by $40 per ounce this week. I do not see more changes to the portfolio other than reestablishing a meaningful short when the time is right. As I said last week, it is getting close to the time when we need to strap on our seat belts in preparation of greater volatility, price declines and a rise in the ownership of safety assets such as gold. The upcoming ride will likely not be a smooth one.

Good Luck and have a great week!

New Additions

1. Proshares Ultra Vix Short

Increase in Holdings

1. Proshares UltraPro Short S&P 500
2. Twitter

Complete Dispositions

1. Alibaba
2. Apple
3. Costamare
4. Frontline
5. Olin Corp

Partial Decrease in Holdings

1. Great Batch
2. Greenbrier
3. Nucor
4. Paypal
5. S&P 500 E-Mini Short Futures
6. Ten Cent Holdings

Overall Equity Portfolio holdings

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

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.

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