February 2016 Trades – LH Index Fund

February 2016 has been a month of “two faces”, the face of a market correction, stronger and more violent that the one in August 2015, and the mild recover towards the end of the month.

The worldwide economic situation doesn’t point towards the green pastures of growth and stability, it seems that the sentiment is more towards the rocky landscape of a recession…

Living in a country that tends to catch pneumonia every time someone in the world sneezes (financially speaking), I am a bit worried of what might happen in the future. On the other side worrying doesn’t do much towards living one’s life, so we’ll see what happens. A recession could be a chance to DCA most of the stocks, so it’s an opportunity after all. If markets will stay put a little or even decide to keep growing then I guess nobody will complain!! 🙂

The market dip allowed me to continue buying into some positions, unfortunately as I do not have a lot of cash I had to limit my movements and I am not in the “building up reserves” phase once more.

LH INDEX FUND

As of 1sh of March 2016 the share are worth 98.14 Euro (-1.86%). I am moving towards a weekly update of the index so that I can start drawing nice graphs and I can also catch draw-down stats that a monthly update cannot catch. All things considered (it touched -8% in February) I can still be happy with the result. Index investment areas are as follows:

BOND – 36.52%
STOCK – 58.31%
CASH – 5.17%

DCA/Increased Positions

LON:IRV – 205 @ 4.9 GBP

LON:LGEN – 430 @ 2.34 GBP

LON:DGE – 60 @ 18 GBP

DIS – 13 @ 88.00 USD

AMS:UL – 5 @ 215 EUR

LON:HSBA – 220 @ 4.5 GBP

FRA:NESR – 15 @ 63.4 EUR

Nothing much to say here, managed to snap some stocks before they go ex-div, in the worst case scenario it was at the same price as in my portfolio (Nestlè, Diageo) in other cases at a lower price. Interserve had a very bad run recently, possibly due to housing market cool-down in the UK and some exaggerated short interest, so I did not add again even if the stock went even more down from my second entry point.

New Positions

LON:WPP – 75 @ 13.65

BIT:REC – 90 @ 21.5

Very happy with the entrance in WPP, finally I can add an industry where I was not invested before and that allows me to diversify the pool of stocks owned in UK. WPP is an industry leader in advertising and marketing worldwide, but it was always quite expensive for my taste. Same story goes for Recordati, one of the few dividend Aristocrats in Italy. Pharmaceutical company, extremely well run and reliable, alas at a very high price. Then all of a sudden stock lost 10% due to a major shareholder cashing in their stocks, and the entry opportunity was there.

Sold Positions

AWR – 55 @ 46.9 USD

American States Water is a good company, a stable utility with a well run business. It was 20% up in my PF and the net dividend was something in the region of 1.3%. I decided to cash in and wait to invest in better yielding stocks when the occasion arises.