Portfolio Rebalancing
作者：老查理 時間：2019-10-06 15:13:36
Given the political and market uncertainties in Hong Kong, I took a few steps to rebalance my Hong Kong portfolio. It is a pity to see what has been happening in Hong Kong. I sold the shares in Kangda Env at a loss. Kangda was a legacy investment with the hope for capital appreciation while generating little distributions for investors. I inititally converted the deposit/ proceeds into USD but in the end, decided to convert it back to HKD and invest in an illiquid listed company that derives its revenue in SGD, MYR, AUD, and other currencies. Cash sitting on the account has a great opportunity cost and is better invested if good companies at a good price can be identified.The company, Centurion, is dually listed in HKD and SGX. Basically, this can serve as a natural hedge against any potential HKD devaluation. The company is generating approximately 4.8% yield at my purchase price. I do not like the high debt ratio the company puts on but its business of managing accomodations for workers and students is estimated to be more resilient in nature and can be a mitigating factor to the high leverage. So, the Hong Kong portfolio, with two investments, is in line with my investment philisophy which needs to generate cash for distributions. These two investments are small cap companies with limited liquidity, percieved to be higher risk in nature. Particularly, when the portfolio is compared to the Taiwan and Singapore investments. Anyway, it is good to be paid something while waiting.