Q1 2023 Portfolio Update
For the quarter Q1 2023 I was up 1%, a positive development. However, the MSCI World Index(URTH) was up 8% in that same time. I added one position in Groupo BMV(BMV:BOLSAA) and sold two positions in Marimed(MRMD) and Vodacom South Africa(VDMCY). I currently sit 65% invested with 35% cash. Hoping that this year I get to 100% invested. I also decided to throw my cash into the Bondbloxx One Year Treasury ETF(XONE) to get more yield. The Bondbloxx One Year Treasury ETF(XONE) mostly holds treasuries with an average duration of one year.
Below is my portfolio net of cash.
| Company | Ticker | Allocation | Average Price Per Share | Price Now | Percentage Up/Down | Exiting/Holding/Adding |
|---|---|---|---|---|---|---|
| Banco Latinoamericano | NYSE:BLX | 9.28% | 15.36 | 17.38 | 13.15% | Adding |
| Good Times Restaurants | GTIM | 6.67% | 3.79 | 2.73 | (27.97)% | Adding |
| ONEX Holdings | TSE:ONEX | 7.01% | 78.28 | 63.18 | (19.29)% | Adding |
| Vinci | VINP | 9.23% | 11.86 | 8.13 | (31.45)% | Adding |
| Village Super Markets | VLGEA | 7.84% | 22.61 | 22.88 | 1.19% | Adding |
| Sutl Enterprise | SGX:BHU | 5.37% | 0.471 | 0.55 | 16.77% | Adding |
| Warner Bros Discovery | WBD | 0.62% | 28.39 | 15.1 | (46.81)% | Holding |
| Airtel Africa | LON:AAF | 6.23% | 137.91 | 106.5 | (22.78)% | Adding |
| Capri | CPRI | 6.13% | 47.77 | 47 | (1.61)% | Adding |
| Six Flags | SIX | 7.31% | 22.41 | 26.71 | 19.19% | Adding |
| Nihon Falcom | TYO:3723 | 5.03% | 1240 | 1210 | (2.42)% | Adding |
| Aeroporto Guglielmo | BIT:ADB | 6.67% | 7.74 | 7.9 | 2.07% | Adding |
| Pacific Smiles | ASX:PSQ | 7.18% | 1.43 | 1.17 | (17.93)% | Adding |
| ACEA | BIT:ACE | 6.95% | 12.55 | 12.6 | 0.39% | Adding |
| Bolsa Mexicana De Valores | BMV:BOLSAA | 8.00% | 35.44 | 38.53 | 8.72% | Adding |
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
Grupo BMV(BMV:BOLSAA)
Link to Thesis(Link)
Subtractions Since Last Update
Marimed(MRMD)
Marimed was purchased based on being one of the best operators in the space, according to certain metrics I follow. Also, Marimed was a bet on legalization. I wrote a note to self(Link) about the marijuana sector which based on more research I have become negative towards. Mostly due to increased time to legalization, commodity nature of the product, and potential interstate commerce. Marimed may be one of the best small operators but they still issue equity for stock comp like crazy. And stock comp is quite large compared to income. For these reasons, I exited Marimed in Q1 2023. But I do still have in the back of my mind to keep a watch on the sector. As I do believe one of the companies will be able to create a true brand.
Vodacom(VDMCY)
Vodacom was sold for the most benign reason. I purchased Airtel Africa in 2022 which had better growth prospects and was cheaper than Vodacom. Also since they are both a bet on growth in Africa’s mobile usage I didn’t see the point in keeping both of them.
Watchlist
Throughout the quarter, I examined a number of companies that piqued my interest. However, for various reasons, I chose not to invest in them at that time. Nevertheless, I am considering adding them to my portfolio or closely monitoring their progress.
Albertsons(ACI)
Albertsons announced a merger with Kroger back in October 2022 at $34.10 a share in cash. A special dividend was announced at the same time for $6.85 a share which is subtracted form the merger price. This brings the merger price to $27.25 a share. Considering the current share price is $20 a share this could be quite attractive. However, if a spin off is utilized three times EBITDA will be subtracted from the merger price(link). A spin off or a divestiture of stores would be needed for the deal to continue for anti-competitive reasons. According to analysts in this Seeking Alpha article, there is a 35% chance for this deal to go through.
Intercorp(IFS)
Most of the Latin American banks have high ROE’s and are trading at low price to book ratios. Intercorp has a low asset duration of around 5 years which should shield them from the interest rate risk arising from the rapidly rising interest rates. Latin America is quite cheap right now, especially Peru which just went through a coup attempt. Though not a real one.
