We are winding down our ValueHuntr Portfolio, which we started during the depth of the financial crisis. The portfolio was created as a way to test our investment opinions in what we considered was a sea of market bargains with no willing buyers. Through the portfolio we also tested our ideas on Special Situations, consisting mostly of companies trading at a fraction of their net cash value where there was a clear catalyst for value creation, such as an activist position or a voluntary liquidation approval. Obviously, those opportunities are no longer around today. Out of 17 positions we added to the portfolio, 14 were profitable. The maximum loss among the 3 negative positions was 4%, and one of them was a hedge.
The main reason behind our decision is that we are embarking on additional projects which make it impossible for us to hold an equities portfolio while preventing future conflicts of interest. Stocks that would have otherwise been added to the portfolio will be profiled in our monthly newsletters from now on. Aside from the portfolio section, the blog will continue to operate as normal.