ThumbTack Fund Report 4 – Generals Firing On All Cylinders

First up, a bit of a PSA: I’m looking for an administrative partner. Basically, SG TTI is getting enquiries about partnerships and all that, and I’m not good at doing stuff like that, and really have no interest either. If you’re interested, drop me an email: thumbtackinvestor@gmail.com, and yea, if there’s monetary remuneration involved, of course, you get to partake in it.

In my last post, almost a month ago, I bragged a little about TTF’s performance (https://thumbtackinvestor.wordpress.com/2020/10/24/thumbtack-fund-report-3-aftermath-of-avenue-therapeutics-atxi/)

“….. TTF has been owning the markets so numbers have changed rather drastically.”

Well, right after that, the markets tanked with the uncertainty around the US elections being at least a major contributory factor. TTF tanked even harder, with a drop in October that’s steeper than the benchmark indices. I made use of the market weakness to pile on positions in my favored generals though, and November has thus far been sweet, resulting in a massive outperformance that’s still continuing.

Ending NAV currently sits at USD 243,181.21, increasing substantially from the previous USD 231,017.94

Total capital injection accounts for USD 184,230.93. There has been no new capital injection from the last report.

Nett gain: USD 58,950.28

YTD:

SPY has returned +12.84%

VT has returned +11.71%

STI has returned -11.95%

TTF has returned +47.71%

It is interesting to note though, that QTD, STI (+12.58%) has actually outperformed SPY (+6.84%) and VT (+8.93%). This means that since the beginning of October, STI hasn’t been doing too badly. Perhaps this could be the start of an improvement in STI’s performance. YTD though, STI is still massively underperforming SPY, VT, and of course, TTF.

I guess the Greyjoys were right afterall. What is dead, may never die!

Some random data:

The South America position refers to some remaining options I wrote on MELI, the ex-general. They’d likely expire.

And of course, dividends:

Of course, my strategy can’t have much of a focus on dividends. Certainly not in the US. The witholding tax would kill such a strategy. Yet, I’m pleasantly surprised to see that dividends accounted for USD 2,016 in gains for TTF. This is not the actual amount collected though, cos 30% goes to Uncle Sam.

Dividends were collected from AVGO, A and V.

In my last TTF report (https://thumbtackinvestor.wordpress.com/2020/10/24/thumbtack-fund-report-3-aftermath-of-avenue-therapeutics-atxi/), my top 5 general list had a vacancy:

  1. Broadcom (AVGO)
  2. GameStop (GME)
  3. Bausch Health Companies (BHC)
  4. Frontage Holdings (HK listed – 1521)
  5. ??????

Nothing has changed to the list, except that I’ve added Alibaba Group Holding Ltd (BABA) as the number 5 general:

  1. Broadcom (AVGO)
  2. GameStop (GME)
  3. Bausch Health Companies (BHC)
  4. Frontage Holdings (HK listed – 1521)
  5. Alibaba Group Holdings (BABA)

The woes that betide BABA currently ain’t a secret. Increased regulation and the possibility of punitive action by authorities remain a huge overhang. Many institutional holders have actually cut their BABA positions, and I’d admit that did feature heavily in my considerations. I don’t want to be the bag holder picking up the shares that these insti guys are off loading. Ultimately though, I think there’s obvious value here, and my options strategy fits this to a T.

So yes, I do think there’s a play that I can make here, that’d turn out sweetly for TTF. Things can turn on a dime though.

With the continued strong performance, TTF is likely to cross USD 250k in net assets this year, which is pretty good IMO for a start. Not to mention I’ve only really started TTF in Feb, right before the pandemic.

I’m tempted to pump in some serious capital in TTF to start off 2021, like USD 750K or so, to bring it up to USD 1mil. But then again, whenever there’s too much liquidity lying around, I’d inevitably end up doing something stupid. It’s just human nature. So better not. LOL.

I’m off to water my crops, so peace out.

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