Investment Portfolio - Grossbaum

[Grossbaum]

I am going to start putting out a quarterly note providing details about a hypothetical investment portfolio that I think will do well over time (unfortunately my firm doesn't allow me to directly invest in individual securities, otherwise this is how I would invest my portfolio).

The goal is to try and somewhat "formalize" an investment track record for myself - such that if in a few years, I start an investment management company, I can provide some details on how I have done in this hypothetical portfolio over the past few years.

The inception date of this "portfolio" is March 14th, so I have been tracking it for 2 full quarters now. I hope that by making it "public" and putting my investing ability somewhat on the line, it will help me to treat this portfolio as seriously as if it were my own money that was invested in these securities.

This won't be of much interest to most readers and I hesitate to even post it, but perhaps if there is interest in any of these securities it can start a discussion (although most already have their own threads).

[stahleyp]

I doubt that having a hypothetical portfolio will be much of a selling point.

If you're good, raising funds isn't that difficult. Raising the right kind of funds and having the right investor base is the bigger hurdle.

[Grossbaum]

Portfolio update for Q4.

2019 Returns
Portfolio +22.8%
S&P 500 +16.8%
(from March 14 inception)

Sold NLSN after strategic alternatives concluded without a sale (either of the whole company or a segment). Instead there will be a spinoff of the "Global Media Business" (Buy segment). The original thesis was that NLSN was a moderately undervalued company with a potential catalyst from the strategic alternatives. I was hoping the discounted valuation would protect the share price if there was no sale as a result of the strategic review. That did not turn out to be the case (from the price I purchased at). I plan to keep an eye on the spin docs.

Sold CISN after a buyout offer from a private equity firm.

Bought Legacy Housing (LEGH) on the thesis that it is a moderately valued, manufactured home builder and lender run by a strong management team that has the ability to responsibly grow the business - perhaps significantly.

Increased position in OZK and CWH.