Helical Port - Q1 2011
So the first quarter of Helical Port is behind it. It was a far more active one than I had planned. When I first introduced the port at the start of the year it had $50,173.96. The port is now worth $53874.32 for a year to date gain of 7.09% (S&P up 6.7%). That is certainly better than I expected for the start of 2011, and I'm very torn in a macro sense on how the full year is going to play out. Arguments for continued running balance expected problems. I'm surprised by the events the market has shrugged off so far this year.
Current holdings are:
Amedisys - 75sh (new this Q)
Athenahealth - 50sh (new this Q)
Bioreference Labs - 150sh (unchanged)
Cardinal Health - 70sh (unchanged)
Cerner - 25sh (new this Q)
Cepheid - 200sh (reduced quantity - still my largest holding)
Exelixis - 300sh (unchanged)
Genomic Health - 200sh (unchanged)
JNJ - 90sh (unchanged)
Medco Health - 100sh (new this Q)
Novartis - 50sh (unchanged)
Seattle Genetics - 150sh (unchanged)
Cash - $9573.02 (greatly increased to 17.8% of port)
Gone from the port are Biorad, CVS, Kendle, Medtronic and PPDI. Biorad was let go due in part to uncertain reasons for holding. It is a good company a good solid company, but just doesn't continue to make the cut for me so far as reason for owning. CVS was replaced by Medco, which has more catalyst for growth in my opinion (but I still like CVS as well). CROs PPDI and Kendle got replaced for different reasons. PPDI is continuing to perform well, and is leading its peer group. I probably should have bought it back already, but the share buyback bugs me (as they often do). Kendle isn't recovering quite so well as PPDI has, and has an unfriendly debt refinance coming up. I may buy again opportunisticly (if they get clobbered). Medtronic is a good company, but I got out of the investment the value I had hoped for. It is probably still cheap, and has some newer products getting onto the market, but isn't necessarily what I want to own in the medical device space. I'd like Mindray at the right price, as the trend should be toward lower cost, lower frill medical instruments globally (and even here).
The portfolio holdings now are higher risk than they were at the start of the year. Balanced by a higher cash position. The riskiest positions are Seattle Genetics and Exelixis. I intend to ignore these for the long term, but may take some profits with SGEN if they actually get an approval this year. Cerner and Athenahealth are plays into the push for EMR/ EHR. Cerner bears close watching, but the momentum is with it. Athenahealth gets more rope as it could be a game changer type of company. It was dumb not to add to JNJ when it dipped below $59. I should probably add to it now. Amedysis is transitioning to a lower margin company, that is still growing its base (but not its top or bottom line). If they get a heavy fine for past billing practices (due to stupid government incentive system) I may add, but they could be a value trap only appearing cheap. It is so hard to tell when the business margins are changing. Home care is a cheaper alternative to hospital / care facilities, so I want a company in this grwoing space. It makes little sense to choke them off.
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