December 2017 Portfolio Report

Dear Readers

The overall sentiment in November and December remained bearish and that was reflected by a retreat of Bursa index. This is due to the overall uncertainty with regard to the impending general election.

KEEP_CALM_28

However, things began picking up since mid-December, with much credit to fund managers, who are window-dressing their portfolios, as they head towards the end of the financial year. The fund managers are selling unprofitable counters and purchasing stocks with momentum (Hengyuan), with a prospect that a last minute hoorah, would ensure that the funds under their stewardship would prevail against whatever designated benchmarks.

I think it’s fair to say that prior to the fund’s window-dressing exercise, most investors’ portfolios suffered significant retreat, in profit. Same can be said from yours truly. My portfolio’s profit was reduced from 21.5% in the beginning of  November 2017 to 15.9%, at the end of beginning of December 2017. At times like that, you begin to question the validity of your stock picks, and more importantly, your conviction. No doubt it is damaging to morale. The constant thoughts of selling your shares at fire sale prices, to preserve whatever shrinking profit that remains, is ever-present.

But, don’t be overwhelmed or fixated by the prices of shares (of course easily said than done). They don’t mean anything other than a price. Look instead at the fundamentals of a company as they are omnipotent over share prices. If fundamentals have yet changed, why should you be obsessively concerned with the prices of shares? The market is irrational as it is filled with traders, who speculate, fund managers, who window-dress, but at the end of the day,  fundamentals will prevail.

COUNTER COMPOSITION (%) AVERAGE PRICE LAST PRICE GAIN/LOST (%)
3A 6.30 1.18 1.00 -15.14
AIRASIA 28.01 2.79 3.35 19.72
CIMB 35.84 5.78 6.54 13.25
DNEX-WD 9.21 0.23 0.21 -9.20
EKOVEST 12.91 1.16 0.92 -20.54
EVERGREEN 6.16 0.84 0.65 -22.59

Total portfolio gain for 2017: 21.90% 

Have a Happy New Year and thank you for reading! If you enjoy reading this write-up, please share and like Bursa: Going Long on Facebook for more updates, analysis and investment opportunities.

If you would like to see the evolution of my portfolio. Check out my previous months’ portfolio update HERE.

Reference:
  1. http://www.theedgemarkets.com/article/malaysian-share-gain-sustainability-eyed-fund-managers-window-dress

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