Adding to ASA, RYAM, and New Positions in ESV, ATW

By on September 18, 2014

A couple of holdings in the SMA Portfolio have exhibited exceptional weakness over the past several weeks. Specifically closed-end fund ASA Limited (ASA), and recent spin-off Rayonier Advanced Materials (RYAM). In order to take advantage of the price weakness in these two issues, shares will be added to bring these holdings up to a 1.5% allocation in the portfolio.

The sell-off in the offshore contract drilling sector continues unabated. Therefore, positions in Ensco PLC (ESV) and Atwood Oceanics (ATW) will be initiated. Two percent of the portfolio will be allocated into each of these stocks.

Funding for the new additions to the SMA Portolio will be obtained from sale of a portion of the Vanguard Short-Term Corporate Bond Fund (VCSH).


Disclaimer: It is very difficult to outperform a buy and hold strategy. Many investors have found themselves well served over long time horizons by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Future performance may not reflect past performance. Profitable trades are not guaranteed. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.


  1. Ben Prichard

    September 18, 2014 at 7:37 pm

    Catching falling knives goes against all that current research indicates gives you an edge. Embrace the momentum brother.

  2. Barron Maestro

    September 19, 2014 at 9:49 am

    Ensco PlC (ESV) was purchased at $44.79, while ASA Limited (ASA) was purchased at $12.62. Limit order bids on ATW and RYAM remain unfilled due to a bump up in their price. If the orders are not filled in the next several days I will consider other options.

  3. Barron Maestro

    September 20, 2014 at 12:36 pm

    Atwood Oceanics (ATW) was purchased at $43.45 yesterday. A bid for Rayonier Advanced Materials (RYAM) at a limit of $30.35 remains in effect.

  4. Barron Maestro

    September 23, 2014 at 10:49 pm

    Additional shares in RYAM were purchased today at $30.35 to increase the allocation to this holding to approximately 1.5% of the SMA Portfolio.

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