I used the small amount of cash I have to top up my holdings in Alternative Asset Opps today. While I have one or two companies I'm interested in, I'm in no hurry to do anything. The portfolio does need rebalancing, though. The "headline number" of my portfolio performance this year is pretty dull, despite a few of my investments shooting out the lights. B&C Speakers is up around 60% and still doesn't look expensive. JD is up more than 50%. Lesson I've learned is sometimes decent companies can be cheap for no particular reason. The other lesson I've learned is that there's not much point picking stocks that go up 60% if they're only 5% of the portfolio. I need to be more disciplined about position sizing. Right now, the portfolio is a complete mess, but I will take the opportunity to sort that out soon.
Markets generally seem toppy. Klarman's returning capital, Marks is making warnings in his letter, and Buffett is talking about being unable to find stuff to buy. Looking at my watch list, the average P/E must be about 20. Some commentators are talking about FTSE 8000. IPOs are going crazy, with Foxtons up 20% today. PE firms are doing dividend recaps. I'll stop there.
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