Portfolio Update

November 2018

Author: Aman Regmi

December 10th, 2018


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Important Information
This report is a monthly update on the performance of York Trading Club’s Long Equity Fund. York
Trading Club is a ratified student club at York University. We prepared this document to offer
investment insights and promote awareness in the fields of finance and investments.
Investing in the types of equities referred to in this report involves various types of risks, including
loss of capital, illiquidity, lack of dividends, and dilution. For more information on the risks of
investing, please read our disclaimer.
The performance statistics stated in this report refer to the past, and past performance is not a
reliable indicator of future results. All of our returns reflect returns from our paper trading activities,
which means that while they show the notional performance of investments based on market activity,
they do not necessarily reflect the cash returns that could be achieved if the relevant financial
instruments were traded.
All tax treatment referred to in this report depends on individual circumstances and may be subject
to change in the future.
York Trading Club does not provide legal, financial, or tax advice of any kind, and this particular report
is for informational and educational purposes only. This update does not intend and should not serve
as legal, financial, or tax advice. If you have any questions with respect to legal, financial or tax
matters, you should consult a professional advisor. 


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Investment Overview &
Performance
Company Market Price (Nov Price (Nov
Symbol Exchange Sector P/L % P/L $
Name Value 1) 30)

Loblaw
L Compani TSX Food- $12,258.00 $52.90 $61.29 15.86% $1678.00
es Ltd. Retail

Retail-
BBY Best Buy NYSE Consum $4,426.35 $72.99 $64.15 (12.11%) ($609.96)
Inc. er

Internati Paper
IP onal NYSE and $4,942.33 $46.48 $46.19 (0.62%) ($31.03)
Papers Related
Products

Floor &
FND Decor NYSE Consum $6,626.00 $32.93 $33.13 0.61% $40.00
Holdings er

S&P 500
SPY ETF NYSE ETF $38,596.60 $280.48 $275.69 (1.71%) ($670.60)

Cash $33,557.13

Total Portfolio Value $100,406.41 Monthly Return 0.41%

Portfolio Profit/Loss $406.41 Annualized Return 5.03%

This past of November was a crucial month for the

financial markets. With market corrections
throughout October, an overall weak earnings
season, and Fed rate hikes scheduled for 2019, the
market dropped significantly. In fact, the correction

###
was the largest of its kind since 2016.

Our long equity fund went live on November 1, 2018;

thus, this is the first month of testing for our
investing strategy. Our strategy is to focus on a
short-term trading horizon, thus we trade based on
event-driven plays and earnings. Over the past
month, our fund has accumulated a total gain of
0.41%. This provides an annualized return of 5.03%.
Over the month of November, the S&P 500 has lost
close to 1% translating to our fund outperforming
the market by 1.6%.

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Our fund’s strong performance through a very dreading month in the markets can be credited to the
performance of Loblaw Companies Limited (TSX: L) which has gained 16% within November only.
Loblaw appreciated on strong earnings, and its guidance was increased by management for the
holiday season. Additionally, a delayed but successful spin-off of Loblaw’s Choice Properties REIT
(TSX: CHP-UN) contributed to the appreciation in Loblaw’s stock price. The spin-off is seen as a
catalyst for the company as it provides tax benefits to both investors and the parent company George
Weston Limited. Loblaw has a portfolio allocation of 12% (See new positions’ table). Best Buy Co.
(NYSE: BBY) on the other hand is our least profitable position sitting at a 12% loss.

Despite beating earnings after we entered this position, Best Buy’s stock has received negativity due
to the uncertain retail environment and increased competition in the e-commerce business from
Amazon. Going forward, it is important to note that Amazon alone cannot fill the demand of the
consumer electronics sector. With 18% higher Black Friday foot traffic, Best Buy is signalling a bullish
case. Our position in International Papers (NYSE: IP) has not experienced much volatility, sitting at a
0.62% loss for the month. We also have a large position in the S&P 500 ETF (NYSE: SPY) and a small
position in Floor and Decor Holdings (NYSE:FND) which have been stagnant.

Closed Positions
Company Market Entry
Symbol Exchange Sector Exit Price P/L % P/L $
Name Value Price

Arrowhe Medical
ad -
ARWR Pharmac NASDAQ Biomedi $2,770.00 $14.61 $13.85 (5.20%) ($76.00)
enticals cal
Genetics

On the other hand, we exited our position in Arrowhead Pharmaceuticals (NASDAQ:ARWR) during this
month. The reason for the exit was that a stop-loss was triggered. This position intended to profit
from Arrowhead’s announcement on its liver medication trial results. The trial was successful as
expected; however, due to the timing of the trial in the midst of market corrections and panicked
investors, the stock saw a temporary decline. Going into this trade, our investments team was firm on
a 5% stop loss to ensure a proper risk management protocol. Due to the risks involved in this trading
strategy, we only dedicated 3% of our portfolio into this trade, and therefore have successfully
generated alpha for the month of November.

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New Positions
Company Portfolio
Symbol Exchange Sector Market Value Entry Price
Name Allocation

Loblaw
L Companies TSX Food - Retail $12,258.00 $52.90 12.21%
Ltd.

Best Buy Retail -

BBY Inc. NYSE Consumer $4,426.35 $72.99 4.41%

Paper and
IP International NYSE related $4,942.33 $46.48 4.92%
Papers products

Arrowhead Medical -
ARWR Pharmacenti NASDAQ Biomedical $2,770.00 $14.61 2.76%
cals Genetics

Floor &
FND Decor NYSE Consumer $6,626.00 $32.93 6.60%
Holdings

SPY S&P 500 ETF NYSE ETF $38,596.00 $280.48 38.44%

November being our equity fund’s first month of trading, we opened several new positions
throughout the month. After a downtrend throughout October in the stock price of Loblaw
Companies Ltd. (TSE:L), we decided to open a long position in the retail giant. We simply believe that
the market had an overreaction over Loblaw’s failed attempt to spin off its Choice Properties REIT
followed by an analyst downgrade. Further, we opened a long position in Arrowhead Pharmaceuticals
(NASDAQ:ARWR). We carefully analyzed pending patents of ARWR under careful review from the FDA
which were due for announcements in late November. As mentioned earlier, this position has been
closed. Our associate team also pitched several other investment ideas including Best Buy Co.
(NYSE:BBY), International Papers (NYSE:IP) and Floor and Decor Holdings (FND) which were added to
the portfolio.

Disclaimer: all information present in this report is for educational and informational purpose only and without warranty of any kind. All
information present in this report represents only the opinion of the writers, which may be influenced by various factors. You are advised to
conduct your independent research and invest responsibly. Investing in markets may not be suitable for all investors, and investing in the
stock market has risks, with the possibility in which you could lose all your investment. Before making your investment decision, please
consult with your financial advisor. York Trading Club is not responsible for your losses, financial or otherwise, as a result of making
investment decisions.

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