Trades for July 5th

In CG/B, where we are 75% invested in equities (our maximum, and well above the 60% targeted exposure), we are trimming an above-average name in terms of size that has improved substantially since we added to the position in mid-May.  The projected return of 25% over the next year suggests maintaining the stock, but a smaller position.

In Top 20, we are selling one retailer and trimming another to reestablish a position in a Large-Cap big-box store.  The buy is down a little YTD, while the sells are up 16% and 29% respectively.  The sells have expected returns of 26% and 31%, while the buy is 47%.  For those who care about taxes, I must apologize, as our sell, which is up 74% from our purchase price, goes LT for capital gains purposes in late August.  I remain optimistic on the name in the short-term in the event you choose to retain the position, and we continue to hold it in the CG/B model.