Really gone Crazy - SRS Portfolio @ 6 June 2020

Following my post about going crazy working from home - I did something really "crazy" this week.

Readers who have been following my blog knew that I have been buying during the Covid-19 "crisis". 

March - I bought 50,000 Lendlease REIT at $0.52, 30,000 of Suntec at $1.45 and 50,000 Starhill at $0.50 and followed up with another 50,000 of Starhill at $0.39.

April - I bought 30,000 CapitaCommercial Trust at $1.51 and my shares in Frasers Commercial Trust was swapped into Frasers Industrial and Commercial Trust. I missed out on Mapletree Commercial Trust as well as AIMPS Industrial REIT.

In my May performance update here, my portfolio value was at $299k and my portfolio since inception was ROI of 1.51x and IRR of 6.4%.

This week, I decided to sell out all my SRS positions to lock in the returns. What made me do that?

• US markets have fully recovered to its pre-Covid status
• REITs in Singapore have started to rally and some of the REITs are trading above book value again while laggards are starting to "run"
• Stocks are rotating out of REITs into other counters even though the fundamentals are not supporting it. 

My head is spinning pretty hard - Is this a dead cat bounce to trap investors or is this the start of the new "norm" where everything will be better from now on. I frankly don't know.

I have not been surprised with the stock rally because there is really nothing else for investors to buy. Bank and bond yields are at record low and frankly, where else can you park your money other than stocks? However, everything looks like a mirage right now because the governments globally are trying their best to keep businesses afloat. I personally think there is a disconnect between stock market valuation and the real economy right now.

Anyway, it must be the Covid-19 making me giddy and blur. There was this "urge" to do a wardrobe cleansing and start on a clean sheet again. 

I cleaned out the entire SRS portfolio and in the process, crystalise a $30,000 Covid profit from the 4 positions initiated in April and May. 

I haven't received all the cash in my SRS account yet as some of the trades will only settle next week. 

(For info - i do have trading positions but I don't really write on those positions as they are shorter term in nature)

 

The ROI as of 6 June 2020 stands at 1.67x and the XIRR at 7.7% (up from 1.51x and 6.4%). 

The market probably still has some legs to run. I am leaving something on the table but it helps me re-look at the market with a fresh lens. 

I am taking a view that correction (or reality) will set in eventually and I will reinitiate some of the positions again. 

Till then - happy SRSing.