Top five holdings

With overall valuation down about 1% from the last top ten post, a check on where the top five are heading.

Roku – up from 8.4 to 9.2%

AMD. – up from 5.0 to 6.0% (after purchase of additional shares)

Nvidia -=down from 5.5 to 5.2%

Marvell – up from 4.8 to 5.1%

Zoom – up from 3.7 to 5.1% (after purchase of additional shares)

Stocks without trades thus increased by 0.8% in relation to total valuation.

Added to Zoom

I have been thinking of adding to Zoom for a while. Analysis of their latest planned acquisition of Five9 suggests that the business could evolve into a powerhouse. So I started to increase this week at 363 and hope that market choppiness will help me buy a few more soon.

We have seen some big losses of value by Chinese ADRs recently. Think I will maintain present positions in KC and XPEV. American investors are becoming very fearful of Chinese names because of political threats to end US quotes and the general backlash against China. Of course the quotes could be moved to London or Singapore – just a depot change away. There will undoubtedly be a lot of noise but this is reflected in discounted valuation for the Chinese tech sector.

Small add to AMD and Nvidia stock split

Increased my AMD holding by 10% to give a roughly equal weighting with Nvidia. Very much like AMD management – best on the block.

Nvidia has just split its stock so one old share becomes four new shares. There is a lot of chatter about stock splits so here are the irregular rules. A company who splits their stock or makes a bonus issue is usually doing well – if they give out very small options to low level employees 100 shares sounds better than 25 ! The irregular rule is that the share price will most probably rise over the medium term.

A reverse stock split is also known as a consolidation. This usually takes the consolidated share price lower in the short term as many companies that consolidate are penny stocks. How did they become penny stocks in the first place ? Often poor management – or if management recently changed the business itself might be destined for bankruptcy – just because some businesses fail despite having reasonable managers..

Top Ten as at 11th July 2021

I have looked at consolidated holdings across my portfolios today and compiled a list of the top ten holdings by value. This is not a recommended list or any such thing – just a statement of where I am invested at the present time.

No 1. Roku at 8.4%

No 2 Nvidia at 5.5%

No3 Advanced Micro Devices at 5.0%

No 4 Marvell Technology at 4.8%

No5 Magnite at 4.4%

No6 FuboTV at 4.2%

No7 Voyager Digital at 4.0%

No 8 Zoom at 3.7%

No 9 Schroder Oriental Income at 3.6%

No 10 Shopify at 3.6%

These holdings account for 47.2% of my portfolios at the present time.

It’s good doing an exercise like this once in a while. In addition to the bigger holdings you might see some down in the 1% area. Certainly a good excuse to sell anything below 1% – how can a holding that size make any difference ?

Quarter end figures and subsequent trades

The SIPP portfolio did well over the quarter returning 7.48% on a time weighted basis. The one year figures showed a time weighted return of 26.45%.

There was one trade after the quarter end – an additional purchase of FuboTV to bring this holding up to weight.

The Personal Portfolio returns were a bit lower. Up 4.65% over the quarter and 24.22% over a year on a time weighted basis.

After the quarter end there was a small reduction in the Roku holding which needed the weighting in this portfolio reduced. Also a small purchase of Vuzix to increase the overall weighting.

The figures for the two portfolios are never going to be equal because of differences in holdings and cash content. However many of the core holdings are split between the two.

The aim remains to invest mostly in technology for the time being. If the SIPP Portfolio continues to grow there could come a point where half of each holding is sold to enable two different strategies to be pursued.

More tidying up on the quarter day

There were two further sales – the balance of American Well putting me out of healthcare altogether for the time being – too early despite telemedicine being set to expand over the medium term. Also sold Qualcomm for a profit to generate some liquidity and start a holding in Vuzix – a smart glasses company.
I have been aware of AR/VR for a long time but never made any investments in this area. Now heading towards the mainstream, or so the people I listen to think.

I have some approximate quarter day valuation figures, but will wait for the time weighted numbers on both my funds (the other values 5th July).

A few changes

Sales during June included the remaining Crown Castle, Teladoc, Pure Storage, and Unity Software. Part of AmWell was also sold.

Snap was a new purchase, and additional purchases were made of Kingsoft Cloud and Magnite. Twilio and Voyager are both now held in their entirety in tax free accounts.

A few other potential sales and purchases are being actively followed.

A couple of new ideas

Sold out of all my oil shares a while ago. Surprisingly the oil price is on a rising trend just now, so opened a small position in Tullow which should benefit from this. Financials look appalling and their recent senior note offering carried a very high interest rate. Hopefully a reasonable short term trade.

Also bought a small starter position in UiPath (PATH), an early play on Artificial Intelligence. They had an IPO in April so there could be some sellers after 180 days, but there are only two pure AI stocks that I know about and this company looks the better buy although valuation is extreme. I bought ahead of earnings today to get exposure around 73. If the price drops I will add – if it rises I may wait a while.

End May update

Since I added to AMD there were two trades. Sold the remaining half of CrowdStrike @215.89 giving a very good overall profit. Added to FuboTV @20.61 – not a large holding after the addition : seems a good way to play sports tv and sports betting in the US as these markets expand.

Some portfolio stocks have done well – Nvidia surpassed the previous all time high on 28th May – and some are still well below levels seen earlier in the year. In some areas like telehealth it seems there must have been a lot of forced selling from funds who encountered redemptions. Index linked funds have less of a problem here than managed funds. In a drawdown smaller company shares can become impossible to sell in big chunks, so funds are forced to sell larger company shares to meet redemptions. Sometimes this leads to excessive positions in smaller companies, and attempts to reduce further undermine performance and lead to another wave of redemptions. Neil Woodford, a previously successful UK equity income fund manager, suffered this fate a few years ago. Smaller companies in the US have better liquidity than the UK because of increased ownership by small investors and speculators, so perhaps US fund managers have an advantage here. My sole UK smaller company holding is Bango – just compare and contrast comments on investor platforms with a few US smaller companies – and instead of dealing at best in the US you need to use limit orders in the UK as market makers in less liquid stocks often quote wide spreads – so you will deal at a better prices using limits whenever there is two way business.

Updating on recent trades

My tax year for personal investments ended on 5th April. Just before this another small sale of Atomera at $24.56 completed my capital gains and dealt with the remainder of my annual tax free allowance. I still hold Atomera from a low cost base, and my remaining holding is in a tax free account.

After using the net proceeds plus cash to do my annual ISA subscription to the tax free zone, I added to Advanced Micro Devices @$79.14. This company continues to take market share from Intel in the important data centre segment, and is optimistic about current year prospects.

Markets have now woken up to the fact that there is a global shortage of chips, and there are consequences for manufacturing industries. For example, about 50 chips go into each car – so we hear of auto makers slowing production to take account of this.

As for Covid, we see improvement in vaccination numbers coinciding with highly dangerous new variants. Indians are being advised to wear masks when at home with families, Americans are being told that they don’t need to mask outdoors, and Sri Lanka reports a variant that can stay airborne for 60 minutes. Just before the ban on flights from India to the UK commenced requests for extra flights to land from airlines had to be denied to avoid congestion (and infection) in arrival halls. Fake test reports are available in many countries to those who can pay and afford long distance flights.