Thursday, April 27

Today we again underperformed the market in the face of continued weak oil prices. XLE, RDSA, and SDRL all fell more than half a percent. General market performance was tepid, with both the Dow Jones and the S&P500 up only 0.03% each. The news of the day was positive earnings from both Comcast and Under Armour, with the possibility of an upset in Amazon still looming this evening. That second piece threatens our Iron Condor position, but weakening margins and mounting expansion costs coupled with heavy resistance in the Indian market make any breakout fairly unlikely.

Today we added the Blackstone Group (BX) to our portfolio, with a consensus target price at $40 and a likely exit price a little lower than that. That expectation is on top of strong distributions for the sector – we were able to secure this stock at a strong discount to even current fair value after an excessive dip after they went ex-dividend today. At end of session our position had already netted 1.15%, and we expect further gains as we move into the new quarter.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s