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| Wednesday, August 15, 2007 |
| Retailers 1 - 0 FundHouse |
Today's drop seems serious. One of the possible reasons is that there might be huge redemptions everywhere. This thus forces the Fund Houses to liquidate their positions. The increased selling pressure thus presents a rare opportunity whereby the retailers have the say over the price.
Take for example MMP Reit. Throughout the run in since April, significant shareholders like Morgan Stanley etc are increasing their stakes (I have not actually check out the increase though, if any) Suddenly the credit risk causes panic and redemption of funds causes the FH to liquidate their holdings.
Ahaa. So.. this is an opportunity to load. Needless to say, I have loaded up quite a fair bit of MMP reit at 1.17, 1.15 and 1.09 respectively. Total position size is about 10% of my portfolio. I intend to use 20% of my funds to load in Reits, indexes and maybe gold funds.
Of the remaining 80%, 10% must be cash. This acts as an opportunity fund. However, the 10% quota must be maintained.
That leaves with 70%. This remaining 70% is used for trading. Of cos, if the reits are moving in good direction, I will top up using this portion of the fund. The same goes for indexes.
Now, I only have 2 stocks, Asia Env and MMP Reit. I will be waiting to pounce once the market shows signs of recovery.
P.S The above mention above redemption of funds is merely conjecture on my part.Labels: MMPReit |
posted by Nenix @ 9:48 PM   |
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| NenixDreams Fund |
| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
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