malbec

I think the basic assumption is that if a catalyst hasn't happened in a year, then it seems unlikely to take place in the next year. Although the position is still technically in an undervalued asset, it's not earning fast enough and the capital should be reallocated to something that is more likely to revert to fair value.

It may be that when you recompose the portfolio a year from now, the same company is on the list, in which case, you don't have to turn it over. So maybe you want to compose the new list before you sell what you're holding.



Edited 1 time(s). Last edit at Thursday, May 5, 2011 at 03:34PM by bchadwick.