Q3 2023 Portfolio Update
As of YTD Q3 2023 I’m up 5%, however, the MSCI World Index(URTH) was up 11% in that same time. I added three new positions while selling out of one. As of Q3 2023 I’m sitting on 74% invested with 26% in cash which is a 5% increase in invested capital from last quarter. Slowly but surely becoming fully invested. In Q3 2023, I introduced Albertsons, Frontier Development, and HRnet to my holdings. I exited my position in Capri due to its acquisition by Tapestry, resulting in a cool 20% gain in less than a year, thanks Tapestry. However I became unlucky with the timing of my investment in Frontier Development. After I invested in the company the stock dropped almost 40%. This was due to poor financial performance which I expected but I guess the market didn’t. Though I might have been a bit hasty to think things will turn around by 2025.
My best two performers this year have been Bladex and Sutl Enterprise up 35% and 41% YTD. My worst two have been Frontier and Acea down 38% and 21% YTD.
| Company | Ticker | Allocation | Average Price Per Share | Price Now | Percentage Up/Down | Last Article |
|---|---|---|---|---|---|---|
| Banco Latinoamericano | NYSE:BLX | 5.6% | 15.69 | 21.2 | 35.12% | Link |
| Good Times Restaurants | GTIM | 4.2% | 3.53 | 2.98 | -15.58% | Link |
| ONEX Holdings | TSE:ONEX | 3.7% | 78.28 | 79.83 | 1.98% | Link |
| Vinci | VINP | 7.0% | 10.53 | 10.2 | -3.13% | Link |
| Village Super Markets | VLGEA | 4.8% | 22.54 | 22.64 | 0.44% | Link |
| Sutl Enterprise | SGX:BHU | 4.2% | 0.498 | 0.65 | 30.52% | Link |
| Warner Bros Discovery | WBD | 0.3% | 28.39 | 10.86 | -61.75% | None |
| Airtel Africa | LON:AAF | 3.3% | 137.91 | 125.6 | -8.93% | Link |
| Six Flags | SIX | 5.7% | 22.26 | 23.51 | 5.62% | Link |
| Nihon Falcom | TYO:3723 | 4.7% | 1257.5 | 1333 | 6.00% | Link |
| Aeroporto Guglielmo | BIT:ADB | 5.0% | 7.94 | 8.28 | 4.28% | Link |
| Pacific Smiles | ASX:PSQ | 3.8% | 1.42 | 1.405 | -1.33% | Link |
| ACEA | BIT:ACE | 5.4% | 12.20 | 10.31 | -15.49% | Link |
| Bolsa Mexicana De Valores | BMV:BOLSAA | 4.5% | 35.44 | 32.71 | -7.70% | Link |
| Frontier Development | LON:FDEV | 5.4% | 3.41 | 2.215 | -35.04% | Link |
| HRnet | SGX:CHZ | 4.1% | 0.74 | 0.73 | -1.35% | Link |
| Albertsons | ACI | 4.2% | 22.09 | 22.75 | 2.99% | Link |
| Cash | 24.0% |
Column Meanings
Allocation: Percentage of portfolio put into the company on a cost basis
Average Price per share: Average price per share I paid for a company.
Price Now: This is the latest price of the company per the date of the last update
Percentage Up/Down: Percentage change from the purchase price.
Exiting/Holding/Adding: This represents if I’m adding or exiting or holding a position.
New Additions Since Last Update
HRnet(SGX:CHZ)
Link to Thesis(Link)
Frontier Development(LON:FDEV)
Link to Thesis(Link)
Albertsons(ACI)
Link to Thesis(Link)
Subtractions Since Last Update
Capri(CPRI)
In August Tapestry announced the acquisition of Capri so I sold.
Watchlist
Dusk Group(ASK:DSK)
Basically the Australian Bath & body works. The company primarily sells candles in Australia. The company is expanding their retail footprint and trading less than 5 times earnings. However they were helped out by covid and those are probably peak earnings. The stores seem to have attractive unit economics. The company sales have been declining since 2021 as they start to normalize from covid. It will be interesting to see where Rev per store and EBIT margins normalize.
Third Coast Bankshares(TCBX)
A fast growing Texas bank with branches in each of Texas’s main cities. The company is trading at around .65 times book and has a large portion of floating rate loans so they should be insulated from any interest rate volatility at least when it comes to their NIM. Their NIM is quite good too. Their only problem is their high efficiency ratio. This is most likely due to their recent acquisition of another Texas bank and their fast branch growth. The company does seem to be focused on reducing their efficiency ratio and if they can get it under 60% they could be doing 10%-15% ROE.
Selvita(WSE-SLV)
A small Polish CRO or contract research organization. They have pretty good ROIC with high management ownership and their building out a new large research facility which should allow them to grow faster than the average CRO while trading at a discount.
Stagwell(STGW)
An ad agency focused on digital advertising rather than traditional TV and billboard ads. I think over 50% of sales came from digital which was alot better than companies such as Omnicom Group Inc., Interpublic Group of Companies, Inc., and WPP plc. Was trading at 1.2 times sales when I was looking at them. Could benefit from the Hollywood strikes ending. Very high insider ownership. Seems to be positioned to benefit from the secular growth trend that is online advertising.
