In May, the Long Term GARP Portfolio had negative returns (down 0.7% net of fees) versus the S&P 500 Index, which gained 0.95%.
The Concentrated Long Term GARP model also performed poorly, losing 5.5%, net of fees.
In the Long Term GARP model, most of the activity in our holdings centered around Liberty Media (LMCA).
John Malone, who controls a number media and telecom assets under the Liberty brand, is a major shareholder in Charter.
The other portfolio holding also affected is Liberty Ventures, which has invested its cash balance to participate in this transaction.
Now, as shareholders of both companies, we sit and wait to see what transpires with the regulators regarding the Charter-TWC transaction.
We continue to wait on Iconix Brands (ICON) to see how the business performs this quarter, but anticipate the fourth quarter as being the crucial period for their numbers.
That’s when the Peanuts movie will be released.
A few of the other existing positions like Cash America International (CSH), Enova International (ENVA) and Dolby Laboratories (DLB) are being evaluated to see if we can find other situations which might prove more productive.
The investments discussed are held in client accounts as of June 18, 2015. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.