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.