Keshav Lohiya @KeshavLohiya: "Hi all, Our bad Q2 performance..."

United Kingdom

Hi all, Our bad Q2 performance continues. We have now drawdown -10% from the peaks. These drawdowns occur once a year, but the more important question is what we do next. To recap, we have made some mistakes. We should have fully exited $LYB (LyondellBasell Industries NV). We got rid of a 1/3 at high $70s. We had another 1/3 to close at $62 but the limit order never got hit. It is now at levels that was before pre conflict, and we are reluctant to be forced sellers. Oil markets have sold off extremely to the downside and there will be an eventual recovery once market digests the new US-Iran deal. The physical oil markets are not fully back to normal and supply chains will take a long time to normalise. US LNG will continue to outperform in the long term and why we are holding on to $VG (Venture Global Inc). In the meantime, we have exited some positions and profit taking in $FRO (Frontline PLC) and $DUOL (Duolingo) to sit on more cash. Historically, these type of market drawdowns have been good for us as it allows to redeploy risk. We are monitoring markets but we will be looking to double our position in $MSFT (Microsoft) and $VG. We are sitting on 13% cash and these type of market and portfolio pullbacks are healthy in the long run. The wider equity markets like S&P and Nasdaq have drawn down -3% and -6% respectively. So we are getting some headwinds from the wider selloff as well. Thought and comments are always welcome. Keshav

Not investment advice. The author may have financial interests in the mentioned instruments.