Call 1.866.825.3005 for more information
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Cheng Yuan is a software development manager for a publicly traded company. He reads voraciously on investment related subjects.
Cheng is continuously searching for great companies from 52-week lows, stocks trading below NCAV, 13D filings, activist investments, ideas from other researchers, and lots of reading. Once an opinion is formed about the company, the company is placed on a watch list with a buy target. It may take a very long time for the price to drop to the buy target, but as more companies are added to the list, the likelihood of a company reaching the buy target increases. Sometimes, with some luck, the company being researched may already be trading below the buy target.
He typically holds between 5 and 12 stocks. Positions are concentrated on the best idea, which may make up to 25% of the portfolio if the risk-reward profile is extremely attractive. In most cases, positions start at 2% and may go up to 10% depending on the attractiveness of the company. He does not sell a stock just because the stock has outgrown its allocated weighting unless the funds could be put to better use in a better opportunity.
A position is closed when the stock has approximated its intrinsic value or when a better opportunity is available. A change for the worse in fundamentals (with no correction in sight) or in management’s policy will also trigger immediate selling.
He may participate in special situations such as liquidations, spin-offs, re-capitalization, going private transactions, and so on if the risk-reward profile is promising.
Reads voraciously on investment related subjects
Important Information
Performance of the model manager’s account is calculated by Covestor on a daily time-weighted basis, including cash and broker commissions. More
Past performance is no guarantee of future results. Month to Date returns & Since Inception returns are revised daily. All other returns (month, 3 month, year to date, et al) are calculated as of the most recent month end date.
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Model commentary
Still bullish on Reading International - here's why
13 September 2011
On August 4th, Reading reported Q2 earnings that were nothing short of spectacular. With the 60% growth in book value from last quarter, the gap between where the stock currently trades and the …
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