My Investment Portfolio (January 2011)

STI started the new year with a bang but lost its momentum towards the end of the month. Middle East unrest was the main reason for traders to sell off their positions, but as a value investor at heart, I took this opportunity to accumulate some small cap value stocks on weakness towards the end of the month.

For my top 30 stock holdings, there is not much changes, except for a new entry - First REIT. It appears my top 30 list for the first time due to my subscription to its rights issue.

For this month, I have accepted the delisting offers for ASA Holdings and China Angel. My holdings in Thomson Medical Centre had also been compulsory acquired by the offeror. I have also participated in the following scrip dividend scheme - MTQ Corp.

I have bought the following companies from the open market this month - Casa Holdings, Chosen, Chuan Hup, Colex, Food Junction, Harry's Holdings, IFS, Kian Ann, Tat Seng, Tiong Seng and Wing Tai. I have subscribed to the following rights issues - Aspial and Shangri-La Asia.

February will be an interesting month as companies with financial year ending 31 December 2010 will be reporting their full-year results. I will be looking at some of these results in details. Wishing all my readers many more returns in the Year of the Rabbit. Gong Xi Fa Cai!

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 January 2011)

Top 30 Holdings (Sing$ Denominated shares)
1. Noble Group
2. SGX
3. F&N
4. SembCorp Marine
5. Jardine C&C
6. A-REIT
7. KepLand
8. CapitaMall Trust
9. Cosco Corp
10. Bukit Sembawang Estates
11. OSIM International
12. Viz Branz
13. K-REIT Asia
14. Hersing
15. Transpac Industrial Holdings
16. Metro Holdings
17. CapitaLand
18. Raffles Education Corp
19. CapitaCommercial Trust
20. Keppel Corp
21. Pacific Andes
22. CDL H-Trust
23. Wheelock Properties
24. OCBC Bank
25. ComfortDelgro
26. CitySpring Infrastructure Trust
27. Genting Singapore PLC
28. First REIT
29. Hong Leong Finance
30. Ascott REIT

Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Dairy Farm
3. Hong Kong Land
4. Jardine Matheson
5. Mandarin Oriental

Top Holdings (HK$ Denominated shares)
1. Fortune REIT
2. Tan Chong International

Top Holding (Aust$ Denominated shares)
1. AV Jennings
2. AustLand PG

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
4. A-REIT
5. SingTel

My Hong Kong Stock Portfolio (listed on SEHK)
1. Peace Mark Holdings

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Greatronic Limited
4. China Printing & Dyeing Holdings
5. General Magnetics
6. Fastech Synergy
7. Beauty China
8. Memory Devices
9. Jurong Tech
10. FM Holdings

My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199

The Year Ahead - Review/Reflections for 2010 and Investment Strategy for 2011

2010 had been a decent year for stock market investors, though not as good as 2009. It has also been a stock-picking year and investors had been rewarded handsomely if they had picked the right stocks. Personally, for my portfolio, I had done quite ok this year. So, here is my review for 2010.

What has done well:

1. Adopt value investing strategy and overweighting undervalued stocks. I had bought in more small and mid cap value stocks this year, while also adding onto existing ones. This strategy did paid off in the 2nd half of the year as STI peaked and the market re-rated some of these value stocks. The downside of this strategy is of course, being unable to participate fully if growth stocks rallied further.

2. By avoiding IPOs and participating in rights issues, I had been adding more into existing stocks rather than introducing new ones. Rights issues are normally priced at a discount from the market, and I managed to add onto some of my core existing holdings like MapleTree Logistics Trust, Ascott REIT, First REIT etc via excess rights shares as well.

3. Minimize sell trades. I have only done one sell trade this year and that reduces turnover rate of the portfolio and in turn reduces brokerage costs.

What has not done well:

1. Only attended a few AGMs. I started the year aiming to go for more AGMs, but it didn't turn out well as I was occupied with work.

2. Less time to go through annual reports. I did not allocate more time to go through some of the annual reports this year and as a result, I didn't finish some of them. I also did not have a system to keep track of those reports that I had not finished going through, until I realized it when doing some random checks.

3. Minimize buy trades. I had a lot of buy trades in different stocks at different times throughout the year and that had got to do with limited budget and dividend payouts at different times. I might want to reduce these small buy trades to save further on brokerages.

Investment strategy for 2011 - I do not like to predict where the market will move. Rather, I would like to position my portfolio accordingly so that it can adopt to different market conditions. I had been positioning my portfolio defensively since the 2nd half of 2010 and will continue to do so in 2011. I suspect 2011 will also be another stock-picking year whereby stock selection will play an important role. I will continue to overweight companies that are undervalued, delivered good cash flows and reward shareholders consistently. Rights issues had been one of the strategy that I adopted in 2010 and I will continue to apply for excess rights shares on selected issues in 2011. I may also want to add onto some of my STI component stocks in the portfolio if opportunity presents itself.