Saturday, October 30, 2010

Portfolio Update October,2010

Another very busy month for me and hence could not spend enough time researching stock ideas. Still I did find an opportunity to put some cash to work.

St. Joe (ticker: JOE) stock dropped due to a short thesis presented by David Einhorn. I also found out that T2 partners are also short St. Joe. On the other hand Bruce Berkowitz(FAIRX) at fairholme capital and Michael Winer(TAREX) at Third Avenue have been bullish about its long term potential and have JOE in their portfolio as a long term holding.

Since I have followed all of the above investors for quite some time I know their respective investment styles.Both T2 and Greenlight are long/short funds and they do trade in and out of their positions quickly to take profits or if a better idea shows up or if their thesis is wrong. While both Bruce and Michael tend to make long term bets and are willing to wait for the investment thesis to work out. So to agree with the short or long thesis on JOE you need to know your own investment time horizon.

I personally like to make very few bets and feel guilty if I am doing lot of trading. My favorite stock would be the one which I never have to sell(besides for tax reasons). So I don't mind if St. JOE is dead money for sometime since I do have ample cash in the portfolio to invest. I don't know much about true value of St. Joe and this purchase is a pure call based on my trust in the fund managers that own it. If in future they trim their position that would be a red flag and I may sell out of this position also.


  1. Gaurav,

    How come you have so little of tavfx? Just curious.


  2. Sorry for this late reply. I just saw your comment. I sold most of my TAVFX earlier this year. All of the gains from TAVFX were long term gains. But a small number of shares I owned were because of dividend reinvestment last year. TAVFX and TD Ameritrade charge a hefty fee if you sell a position within a short time interval(3-6 months).Hence I asked the broker to not sell the shares I got due to dividend reinvestment. And thats the reason for the small holding I still have in TAVFX.