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Portfolio Update: June

By: peddhapati

All good runs must come to an end and mine did in June with a negative return for the portfolio of -1.23% . I read somewhere yesterday that the FTSE is up about 45 points for the year and so it seems nothing much is happening anywhere else either. In the meantime, I suppose, the trick is to keep trading costs low (not a problem for me) while waiting for the dividends come in.

Positive movers were few and far between over the month: AstraZeneca nudged up while Glaxo nudged down; the latter on news of some managerial shenanigans in Shanghai. It was pleasing to see a director buy a substantial number (20,000) of AZN shares this week–having seen repeated Pfizer bids rebuffed, I think it is important to see some insiders backing the company with money, rather than just words.

BAE and Rolls strengthened slightly after their recent poor runs, on news of strengthening existing relationships in Saudi Arabia and a buyback, respectively. The former also seem to be in the frame as a potential target for the currently fashionable tax inversion manoeuvre, although surely BAE Systems is much more important to the national interest than AstraZeneca and the government also has a golden share in BAE so I am not sure how likely this could be.

JP Morgan Chase also edged higher over the month. I added to this position in June and hope to continue doing so over the coming months, so I would prefer to see this price to be moving in the other direction for the time being. I also added to Diageo which, despite rumours of a potential sale of its beer portfolio (Guinness, primarily) to SAB Miller, seems to have put down roots in the 1800s. Again, a lower price here would be nice too as I would also like to continue adding to this position.

Oh well, perhaps I should be careful what I wish for — lower prices tend to be like buses…

Disclosure: Long AZN, GSK, DGE, BA., JPM.
Disclaimer: This post is not a recommendation to either buy or sell. Please consult your investment advisor.

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