A quick “post mortem” on three stocks that I recently exited: Expedia, Cars.com & Record Plc. All three were disappointing in absolute or relative terms and especially in two cases I really made mistakes.
Some days ago, I sold my Expedia shares with a small ~10% profit, although the stock dropped by almost -30% in one day after the Q3 result announcement.
What happened ? Well, Google travel seems to have taken a big dent out of Expedia’s business. I even wrote about Google travel some months ago but didn’t actually do anything. This was my takeaway back then:
Disclaimer: This is not investment advice. PLEASE DO YOUR OWN RESEARCH !!!
A few months ago, fellow blogger Wexboy had a very interesting post on Record Plc, a UK based “specialty asset manager”. Go and read the whole thing, it is worth it.
I try to summarize the business & background in my own words:
Record Plc provides so-called “Currency overlay” asset management services. Currency overlays are in principle used for two reasons.
- To hedge an international investment portfolio into one single currency, usually the currency of the investor and/or
- To gain some extra yield by hedging currency exposures more “dynamically”
It is important to know that they do not manage the underlying assets, but “just” a derivative portfolio hedging the underlying assets and that they do not use their own balance sheet but act solely as an agent for the ultimate client.