AAII Model Shadow Stock Portfolio Changes

After performing his quarterly review of the Model Shadow Stock Portfolio, Jim Cloonan made the following changes:

Sell:

• Ultra Clean Holdings Inc. (UCTT) because its price-to-book-value ratio of 3.04 (as of the close on 8/31/2017) exceeded the valuation limit for the portfolio. Shadow Stocks are sold once their price-to-book-value ratio goes above three times the initial criterion. The current initial price-to-book ceiling is 1.00.

Buys: 

With the proceeds from the UCTT sale and the existing cash position of the Model Shadow Stock Portfolio, there was enough to take positions in three companies at roughly the average position size for the existing holdings in the tracking portfolio. Those additions are:

• Amira Nature Foods Ltd. (ANFI)
• Delta Apparel, Inc. (DLA)
• Strattec Security Corp. (STRT)

We will provide additional information in the September Model Portfolio Update, which will be emailed on September 15. (AAII.com will also be updated to reflect these changes on September 15.) Jim Cloonan will discuss his buys and sells in his column in the October AAII Journal.