Performance – December 2023

SSI tracking portfolio was up 0.7% in December 2023. A detailed performance breakdown is provided below.

Below you will find a more detailed breakdown of tracking portfolio returns by individual names as well as elaborations on names exited during the month.

 

TRACKING PORTFOLIO +0.7% IN DECEMBER AND +12% IN 2023

Disclaimer: These are not actual trading results. Tracking Portfolio is only an information tool to indicate the aggregate performance of special situation investments published on this website. See full disclaimer here.

The chart below depicts the returns of SSI Tracking Portfolio since the start of 2017.

SSI Tracking Portfolio Returns Since 2017 1

 

PERFORMANCE SPLIT DECEMBER 2023

The graph below details the individual MoM performance of all SSI Portfolio ideas that were active during the month of December 2023.

chart 4

 

PORTFOLIO IDEAS CLOSED IN DECEMBER 2023

Neoleukin Therapeutics (NLTX) Breakeven in 5 Months
Neoleukin Therapeutics was a busted biopharma trading at a significant discount to its net cash and exploring strategic alternatives. The strategic review culminated in an announcement of a reverse merger with another clinical-stage biopharma, Neurogene. This prompted arbitrageurs, who were expected liquidation, to scramble for the exits, putting substantial downward pressure on the stock price. The sell-off seemed to create a buying opportunity with downside partially protected by the projected net cash of the combined entity. I expected that the market could start viewing the prospects of the combined entity differently before the closing of the reverse merger. Several aspects gave some confidence that the merger consideration (16% of the combined company + a CVR) could prove more valuable than the NLTX market price at the time. There was also a small chance that shareholders would reject the merger and the company would instead opt for liquidation. Unfortunately, the reverse merger with Neurogene closed in mid-December, and neither a share price re-rating nor liquidation materialized until then. As I had no intention of holding an investment in post-merger Neurogene, I closed the position at break-even levels + the CVR.

 

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