Performance - October 2023
This post documents the published current and quick ideas on this site for the month of October 2023 and provides quick commentary on any developments in the published ideas.
Performance is measured by the total return of the current ideas section. However, for tracking and illustrative purposes, quick ideas and a basket of both portfolios will be published, too.
Performance of ideas is currently measured as a basket of equal weights in their respective categories. The performance results are not actual trading results. Please conduct your own due diligence before making any investment yourself.
Acitvity over the month
In September, one new post was added on Whiteacre and four ideas were closed:
Current ideas - 1 new current ideas were published (3 closed)
Quick ideas - 0 new quick ideas were published (1 closed)
October was propbably one of the worst months in my investing career with multiple names collapsing.
In the current portfolio, Covestro ($1COV.DE) fell on no particular news, however given the long silence from both the company itself and ADNOC, I have doubts about the deal moving over the finish line. The way forward should be pretty clear at this point - sell the company at an attractive price - but given the long silence, I believe that the management, which has been opposed to a transaction, will go through with the deal.
L'Occitane ($973.HK) should have been closed once the take private thesis fell apart. Although it is still the by far cheapest company in its peer group, there is no catalyst on the horizon. The current idea was closed and removed.
Catalent ($CTLT) fell by 30% following an earnings miss and a generally downbeat earnings performance and continued struggles at the company. The thesis regarding a potential sale looks more far fetched now. The quick idea was closed and removed.
Spirit Airlines ($SAVE) also fell over 30% following abysmal earnings and new doubts over its aqcuirers ability to close the deal. The idea was (potentially only temporarily) removed.
Performance of the portfolio in the month of October was as follows:
Performance of quick ideas and a combined performed as follows:
