CGC Portfolio Position Update #4
Changes made to our portfolio as of 05.05.2023
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January was quite the shit show. Massive short squeezes and retail inflows caused quite the abnormal stock market rally that left many trying to play catch up. In February, we had multiple data points come in that were showing that both the economy running too hot (jobs) and that inflation was creeping back up again (aka, sticky).
This all means that February was a busy month.
Since our Q1’23 update, we have
Added 3 net new positions
Resized 6 positions ⬆️
Exited 2 positions
Traded 2 positions
But before I dive in, I want to highlight two things from those that have been following my posts recently.
1) Update on IPO Interactive Strength (dba FORME)
Back in February, I caught wind of a connected fitness company trying to go public. It was called FORME but the actual name was Interactive Strength TRNR 0.00 and it was another hardware coaching company that I had little faith in.
I wrote about it in the post below.
TL;DR: I thought it was crap and explained why.
Come IPO day, the company offered 1.5 million shares at $8/share and quickly sank to $5.50 before closing at $6.61. Fast forward a week later, and the stock has nearly been cut in half.
I can’t see how this company makes it and am pretty sure it will shit the bed sooner or later even more than it already has.
Given the circumstances, yes, I’ll chalk this as a win. If you acted on it too. Congrats! 🎉
2) The UK Says “No Tea For You” (Microsoft/Activision)
That’s a semi-Seinfeld joke if you get the reference. If not, then I’m clearly dating myself. The second update that I wanted to give involves the Microsoft MSFT 0.00 and Activision ATVI 0.00 acquisition.
On April 23rd, sent out an update on the arbitrage trade to paid subs with a teaser for all my free subscribers of mine with a 2-week free trial (that means you) to inform you of my thoughts and updated trade.
In this trade, I highlighted the regulatory hurdles and how I thought the deal was going to go through and the UK would be no issue. I was wrong on this. However, the trade I structured was meant to accomplish two things.
Should the deal go through, my hedged position via PUT contracts wouldn’t destroy my trades’ PnL and I would still capture a decent return overall at the $95 takeout price.
Should the deal fall apart, the implied volatility of my 7/21 $77.50 contracts at $1.75 would reduce the blow from the downturn BUT my long equity position in ATVI was geared towards me being comfortable holding onto the name on a standalone basis.
As of the time of writing this, CGC is still up on the trade by over 27%.
In other words, the trade has worked thus far. For those of you that also took notes on my trade and did something similar, congrats! 🎉
Anyways, those were my two highlights of the last month that I wanted to share with you all. Again, if you’d like to have a 2-week free trial you can click the button below.
Now onto the updates on the positions.
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