Bear's portfolio as of Mid-August
In the last 3 weeks (mostly the last 2) every company in my portfolio has reported earnings, so much is happening! I thought I'd do a little update. I'm also pretty happy with the bounce up to almost +30% for the year (from ~14% at the end of July) so I'm sure some vain part of me wants to show that off.
NEW POSITIONS
Astera Labs - Simply had to get back in when they guided for 43% sequential revenue growth next quarter!
Celestica - Just looking into this company and I really like what I am finding. CLS sells networking equipment, switches, etc. Their customers are the hyperscalers as well as recently announced OpenAI and many others. The last 5 quarters YoY revenue has grown 21% -> 28% -> 44% -> 53% -> 62% and they are guiding for 74%! Margins are tight, but they are consistently profitable, and profits are expanding with revenue. They just raised $3b in a secondary, so the share price fell last week. I started a position on this one.
Bloom Energy - a little try-out in a super fast grower that is benefiting immensely from the DC build out (I know Nebius specifically calls out their partnership with Bloom).
THE HEART OF THE PORTFOLIO
Silicon Motion - I've kept adding in Aug after that incredible earnings in July that the market seemingly ignored. Kind of wish I'd added more.
Figure Tech - Heck YES. The Aug 13 report was simply dynamite. I rarely add to a large position that's up 25%+ within a couple weeks...but I added after that report.
Toast -- was very happy with the quarter they reported Aug 4th. Trimmed a little, but not much. I think there's still value here...they still have room to keep improving margins.
Ethos (Ticker: LIFE) - Marvelous quarter on Aug 3, and (like I did with FIGR) I actually added even though it was up! Then it kept soaring and is up almost 70%+ in August! I've been trimming, but I'm happy with a solid position size here.
Sofi - Trimmed in early Aug after the price rebounded 10%+.
Reddit - Trimmed in early Aug after the price rebounded 10%+, and trimmed a bunch more yesterday when it jumped after being added to the S&P 500.
Hinge Health - Great report and solid raise to the FY guide, but man, why did they have to go and make an acquisition? It seems like an ok one...but not closely related to their core business. It muddies the water for me, so I dialed this one back to mid-sized. It's also not super cheap anymore since it's up 90%+ ytd.
SMALLER POSITIONS
Liftoff Mobile - The Aug 12 report was kind of underwhelming and delivered with fairly low energy from mgmt IMO. But this thing is trading at like 8x trailing Ebitda. I mean, c'mon.
MercadoLibre - Probably will do fine, but just isn't very exciting.
Root - Probably will do fine, but just isn't very exciting.
Sea Limited - Probably will do fine, but just isn't very exciting.
AppLovin - After the not great quarter on Aug 5, I've slashed it and might sell.
Kulicke and Soffa - Didn't like their uncertainty about being able to support a $450m/quarter revenue run rate.
Axon - Up more than 15% at some points during the month, I took some gains. I'm always comfortable trimming any position that I feel is getting expensive, but Axon is one I'm super comfortable adding to when it dips.
Cohu inc - Not really worth mentioning. Seems ok, but not growing like the rest.
POSITIONS I SOLD IN AUG
Rubrik - I'd been falling out of love with this one for a while. I just see too much deceleration. After the huge bounce back from the March lows, I took this huge spike in early August as a chance to get out.
Lumentum - I've just been on the fence with this one. Never more than a tiny position. It seems fine, but a lot is expected, and it's priced up.
Entravision - Just not the explosive growth I was hoping they'd have. They mentioned Q3 would be sequentially down.
Well, that's a wrap! Hope the second half of August is as good as the first! Though that's asking for a lot!
Bear
