·
Chou’s 13F portfolio value increased from $237M to
$264M during the quarter.
·
Chou decreased Nokia while adding DaVita.
·
Resolute Forest Products at ~19% of the
portfolio is the largest position.
Francis
Chou’s Chou Associates portfolio value increased ~11% from $237M to $264M during
the quarter. The portfolio continues to be very concentrated with just 26
positions. Below is a summary:
1. Berkshire Hathaway (BRK.A): The ~19%
portfolio position is the largest 13F equity stake. The last major activity was
a 50% reduction in Q1 2016 at prices between $187,000 and $214,000. The stock
is now at $310,000.
2. JPMorgan Chase Warrants (JPM-WT): The ~4%
stake in JPMorgan TARP Warrants was acquired in 2011 at much lower prices. The
position had remained relatively steady since. Q1 2017 saw a ~44% selling as
the underlying traded between $83 and $94 and that was followed with a similar
reduction in Q3 2017 as the stock traded between $82.50 and $95. Q4 2017 saw
another ~50% selling as the stock traded between $95 and $108. JPM currently
goes for $107.
3. Resolute Forest Products (RFP): The ~19%
RFP position has been in the portfolio since 2010 (Abitibibowater at the time)
and the cost-basis is much higher compared to the current price. Q2 2013 saw a
one-third increase at prices between $13 and $16. The five quarters through Q1 2016
also saw a ~20% combined increase at progressively lower prices between $4 and
$19. The stock is now at $11.85. There was a ~7% trimming in Q4 2017 while this
quarter saw a marginal increase.
4. Bausch Health (BHC) previously Valeant: BHC
was the largest position at ~15% of the portfolio as of Q3 2017. The stake was
almost eliminated last quarter at prices between $11 and $22. The original
position was from Q1 2016 at prices between $26 and $102 and increased by ~48%
the following quarter at prices between $19 and $36. There was another ~35%
increase in Q4 2016 at prices between $13.50 and $24.50 and that was followed
with a ~20% increase the following quarter at prices between $10.50 and $17. Q2
2017 saw another ~30% increase at prices between $8.50 and $17.30. There was a
~10x stake increase last quarter at prices between $15 and $24. The stock
currently trades at $22.20. Chou realized losses and is now building the stake
back up again.
Below
is a spreadsheet that highlights the changes to the portfolio as of Q2 2018.
Please check out our previous update to have an idea on how the
portfolio is progressing:
To learn more about how to profit from a strategy of cloning
hedge fund picks, check out our book Profiting from Hedge Funds: Winning
Strategies for the Little Guy .
No comments :
Post a Comment