180 Degree Capital (TURN)

180 degree capital is a closed-end mutual fund discounting to his Net Asset Value.
Discount was 30% in December, now it’s 55% based on pre-crisis portfolio valuation. It could be lower or higher depending on the portfolio performance during crisis. I didn’t check evolution of all public portfolio lines but below is the evolution of two of them. What we can see is they weren’t that much impacted by the virus:

Some metrics (using $1.4/share) :

  • NAV/Share = 3.06
  • Price/Book = 0.45
  • MarketCap = 40M
  • ROE = 15%

Insiders continued buying shares during crisis, none of them sold. They bought the bottom. A good sign telling me they are confident for the future.

Conclusion : A pretty decent discount, with insider buying and a decent manager focusing on micro cap activism. Impact of crisis is uncertain but the big discount protects us quite enough.

-> Long. Purchase price: $1.4.

Ah some fast news : I closed my short position and Softimat skyrocketed this week! Some purchases will come on next weeks. Cheers.

Sold (almost) Everything

I didn’t write for many months, I will try to update my site more frequently.

I sold almost all my lines just before COVID-19 came to Europe. I went hardly short on February using 75% of my French portfolio on a double short ETF replicate (BX4). I anticipated this crisis using reddit and following reports of r/China_Flu so thanks Reddit (and a big shame to Twitter that censored all COVID hashtag from january to february).

Here is my current portfolio :

  • BX4 (leveraged x2 short CAC40 ETF) purchased at 3.02€
  • Softimat purchased at 3.53€
  • MG Home (analysis to come)
  • Nisso Pronity (analysis to come)

I kept Softimat cause I have a big stake there and the stock is pretty illiquid + I think it won’t be as much impacted by COVID-19 cause of :

  • It has few number of employees that still can work from home ;
  • The society is a REIT, Real Estate is a protection from inflation if BCE print money as FED did ;
  • Buybacks continue during crisis (last buybacks on March 26 at 4€).

The only risk would be renters to stop pay their lease cause of bankruptcy, I have to conceed I didn’t checked who are the renters.

I will post a more in depth analysis about Softimat soon.

Now is the biggest challenge : when to exit short. Well I don’t know, I think crisis is front of us and not behind. I read on a twitter account (such scientific haha) that CAC40 net value is 3200, I won’t go under this price and it feel a correct take profit. I still don’t have stop loss, I don’t like them, I bet I exit if people restart to work, and if I find good opportunities with a better risk reward than my short. Japan is the first step, I have some companies I’m waiting to invest on.

2019 Annual Performance

2019 was an excellent year with a 44% return on my main portfolio or a 60.6k€ net win. This portfolio is purely french (with one belgium holding exception), GRVO and GAM count for 60% of all holdings.

I started building my second portofolio during summer, and filled it completely in november. Results aren’t significative, I won 1k but lose on overall return percentage (my last positions were bigger and had better return).

Here is a view of my main portofolio evolution during 2019. I started 1st January 2019 with 137k€. I didn’t make deposit.

Here are my current holdings as to 01.01.2020 (P2 is my main portfolio) :

Let’s hope 2020 will continue this way ! 🙂

By the way I forgot! Happy New Year! 🍾 🍾 🍾