It just felt like yesterday that I was writing the Q1 newsletter for 2023. Another 3 months is in the books and now that we’re half way through the year, I’m glad to say that James Capital is doing well and creating alpha as I would love. YTD, I’ve achieved 43.45% rate of return. That is compared to the S&P’s 16.89%. So, almost triple that of the S&P 500. I have not sold any positions within the last quarter but I’ve made a few systemic additions. What I would like to talk about though, is a missed opportunity. As you may have heard, Cava, the popular fast-casual Mediterranean restaurant went public last month. On the first day of trading, the stock doubled! Here’s the interesting part of this whole story. In one of the rarest opportunities, I was invited to participate in the IPO because I was one of their most loyal customers achieving a “Epicure” status within their food app.
I was contacted by email, signed up and reserved 200 shares at IPO prices but at the last minute, I decided against it. Why? Because of my rule of thumb to not invest in single stocks. Long story short, if I borrowed to money to procure the 200 shares and sold on the first day of trading, I would have banked over $4,000. Crazy. There’s a saying, “every great and stupid decision looks obvious in hindsight.” You win some, you lose some.
Moving on, I’ve continued to invest and trust the portfolio composition I have for James Capital. Below is an image of the portfolio holdings and allocation
All positions are in the green YTD so I don’t expect to do any tax loss harvesting at the end of the year. I’m confident about the diversification this portfolio has and the growth potential of each company within each index.
As always, thanks for reading and feel free to share with those interested in learning.
Daviel James
James Capital