The Investing Diaries - Feb. 25th 2020

This is the first of the posts in the 2k Hedge Fund investing diaries where I will document on a weekly (daily sometimes) basis what is going on in the portfolio, the decisions that are being made and the feelings that I have surrounding those decisions/market moves. This is a more informal place where I can write about these things freely instead of the normal valuation or company analysis posts that I usually complete.

February 25th

The coronavirus has begun to effect a lot more than China now. Iran has now been infected and France has begun to post more in depth about the virus as well. Yesterday the Trump administration asked congress for more funds to help with the preparation, and the US has begun to incur cases.

The S&P 500 has fallen almost 10% at this point, from 3386 to 3128 allowing for a small opening in some companies. The USO fund that tracks oil, has fallen about 20% during the same time, with fears that China’s shutdown.

Today I sit with about 50% cash in my portfolio but am somewhat heavily weighted in oil and steel companies in my actually holdings (about 40%). This is because the value there, in the companies that I am in, is well worth the risks in my opinion.

I am going to put some capital to work today and am purchasing a small position in ViacomCBS. This company is well undervalued in the media market and could be a good acquisition target of a company looking to extend the reach of their streaming services.

I will begin to put more capital to work tomorrow and in the upcoming days and weeks.