The Concentrated GARP portfolio had a tough month of January and declined 8.0%, worse than the 3.5% loss of the S&P 500 Index (SPX).
So far this year, investors have moved money out of consumer discretionary stocks. In addition, there has been foreign currency weakness in some countries and investors on the wrong side of a carry trade have unwound their positions and that has placed pressure on equity markets.
In my opinion, I expect heightened volatility in the currency and stock markets will continue to be the norm and not the exception.
Here’s an update on my holdings:
GigaMedia (GIGM) reported earnings in November that were better than expected and strengthened its board representation with better auditors and independent board members.
DigitalGlobe (DGI) is a satellite provider of commercial earth imagery and information services.
Corelogic (CLGX) is an information provider which specializes in data about real estate related industries. A large part of their data centers focus on property and mortgage information services. In addition, they provide credit information in a variety of industries as well.
Cass Information Systems (CASS) provides information, invoice, and payment processing services to a wide variety of enterprises in the United States. Cass also has a small banking division as well.
Dolby Laboratories (DLB) provides audio and video products for the entertainment industry on a global scale. Much of their revenues come from licensing their technologies on personal computers, laptops, tablets, and smart phones. In addition, they make sound systems for a wide variety of customers, from movie studios, theatres, and network and satellite television providers.
Jamba Juice (JMBA) is a health food and beverage retailer with a presence in 26 states domestically, as well as operations in Canada, the Philippines, and South Korea.
Cash America (CSH) is the largest operator of pawn shops in the United States. The company reporteddisappointing earnings for the fourth quarter of 2013.
Build-A-Bear Workshop (BBW) is a provider of build your own teddy bears for small children.
Telefonica Brazil (VIV) is the second largest provider of cable TV and wireless phone services in Brazil.
DISCLAIMER: The investments discussed are held in client accounts as of January 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.
