Like everything else in the market the IPO Candy Folio has been taking a beating of late. However the more concentrated approach we have been using along with a form of hedge has allowed our holdings to outperform the market. That may not be saying much right now but the key is the confidence we have in our holdings over the long term.
Investors in the Folio get automatic updates and can even sync their holdings to match ours but for the rest we attach our positions and weights as they stood at the end of last week. In total we have 25 long positions, 5% cash and a kind of short in the form of RWM which is an inverse ETF.
We’ve documented these holdings to a greater or lesser degree in published notes and posts over the past few years (Ellie Mae comes out later today) but here are some comments that provide at least a flavor of our thinking in running this Folio:
InvenSense INVN – Their chips are what enables the location, orientation and motion of a smart phone to be translated into actions in software.
OpenTable OPEN – A bit of a a fallen angel but they still lead the market in putting restaurant reservations on the internet and for mobile.
RPX Corporation RPXC – This is a harder story to understand but they are essentially the only insurance and cost management company for patents and IP.
Active Network ACTV – They automate the process and allow community building for events and people with active lifestyles.
Ellie Mae ELLI – Automating the ugly process of mortgages and putting it on the internet with a platform that service providers can all share.
Tesla TSLA – The Apple of Automobiles.
Yandex YNDX – Russia is a big country. Think of Baidu for Russia and you have Yandex.
Zynga ZNGA – This is a company everyone loves to hate right now but they create social experience and piles of cash out of thin air.
Verastem VSTM – This is an early stage biotechnology company that is going after cancer at the root (stem cells). Strong team of scientists and backers.
RealPage RP – Putting rental property management on the internet and making it simple.
Financial Engines FNGN – The basics of investment allocation can be automated and must be compliant. These guys do it with software.
Ancestry.com ACOM – We’ve had this one for a long time. They have some exclusive data that people care deeply about. In play now. We will probably sell.
SciQuest SQI – Another case of internet and online business process automation but this time for scientific supplies and organizations. A niche but one we like.
LinkedIn LNKD – Despite the security breach and some mediocre execution this is still Facebook for business and has a bright future providing management gets some fire.
Intermolecular IMI – This is a very technical and not-well-received IPO. They dramatically speed up research into new advanced materials including semiconductors.
Solazyme SZYM – A terrifically managed company in a challenging space (biofuels) but they are really much more than that. We will probably add to this one.
Solarwinds SWI – They’ve been around a long time and have proven that you can sell enterprise management products on merit and not sales organizations.
Tumi TUMI – This is strong consumer brand in the mid-stages of development. Great management team, strong execution and high profitability. Would add on a hiccup.
Greenway GWAY – That internet/business automation theme again but this time in healthcare. We’ll see many more of these in the coming years. Thank goodness.
Teavana TEA – There are many indicators showing a movement to better and healthier living in the US. (Check out what people are reading.) Tea is part of that.
Protolabs PRLB – These guys make products fast from digital designs. Like 3D printing but at scale and high quality. Hot IPO and strong performance limits our weighting.
Ceres CERE – Another strong company that is painted with the “clean energy” brush although their genetic engineering of crops has broad application.
Homeaway AWAY – That’s right still another internet-based disruption of a traditional market, this time for vacation rentals. Like AirBnB but for adults.
Fusion-io FIO – Servers get faster, storage gets faster by moving to SSD. FIO combines both in one box which works well for some applications.
Short R2000 RWM – This is the best we can do in this account as far as we know (can’t short directly and no options) and it’s been helping. These ETF products are just so-so.
Voila our holdings with a few notes. As you can see from the table we also still have 5% in cash that can be allocated.
This dreadful market gives us time to evaluate and we may make some adjustments later this month and more actively manage positions as we come out of whatever morass we are currently in. When and from what level nobody knows.
If you have an interest in the IPO Folio you can find more information about how it works on our IPO Folio Invest Page or go directly to Folio which handles the account and follow the instructions there.
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