Portfolio update for Marwood Capital for week ending 9 March 2014:

Our portfolio advanced by 0.7% last week, continuing the good form that we experienced in late February. Our stocks have benefitted from the rally that has sent US markets back to their record highs.

Our best performers last week included Disney ($DIS) and Perfect World Co. ($PWRD). PWRD climbed around $3 in advance of its earnings report on Monday. The company is involved in the online multiplayer RPG industry and trades with a PE of 18.01.

portfolio update - image of PWRD stock chart

Our UK stocks did quite well and we saw advances registered for Fenner plc ($FENR.L) and Kentz corp ($KENZ.L)

Meanwhile, our short position in the US 20+ year treasury fund continues to lose us money and our position in $KEG moved from green to red.

New positions

In terms of new positions, we took advantage of a significant drop in Copa Holdings ($CPA) this week and initiated a speculative long position at $126.18. CPA are a regional airline operator in S America that I wrote about previously on Seeking Alpha and looks very well valued according to our criteria. PE Is 13.02 and PEG just 0.55. Furthermore 5 year EPS is an impressive 28.90%. The stock dropped last week on political turmoil between Venezuela and Panama. However, the drop appears overdone.


Although stock markets are elevated, particularly in the US, we continue to see no reason to short the market and will continue to look for cautious long positions in the markets we trade.

With stocks at record highs, the possibility of a 10-20% correction is always there, however, so is the risk of missing out on an extension of the recent rally. So long as central banks remain flexible with regard to their loose monetary policies we prefer to remain long and stick to our systems.

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