1) Having read the accounts I have been struck by how much of the valuation is not actually mark to market or cost base but seems to be down to managements valuation. I have no information to in any way suggest that this is not being impeccably done. But when the guy selling it to me is also the guy telling me its worth I get nervous.
I did notice this when reading before the investment. But it did not strike me so clearly as it does now.
2) Alongside this I am looking at the assets and I less and less see the renewable side as that fantastic. We do have low oil prices and various economies where political support for renewables is no longer translating into cash. I think this will get worse rather than better.
3) In terms of portfolio management I am trying to improve this area. One factor I am increasingly focusing on is setting clear review metrics, in all sort of areas. At the review I should be able to say I want to buy more or I should sell. This will not always happen I am human. But JLG was reviewed for size and I did not want to buy more and was prepared to dispose of the holding.
4) I am aware of the eternal debate between diversification and dewersification. I have written on this is the past and I do not have a magic bullet. However I do think there is some truth in the thought that if you are stock picking by finding good companies you will have better and worse ideas. If its a quant strategy all over the screen are equally good. As I am picking companies I am also trying to rate my confidence in the idea. I am clearly not nearly good enough to really believe that my sixth best idea is really better than my tenth. But I do think that it should be better than my 30th. As it is all things considered JLG came in around 32nd and this with the points above meant it was sold.
In case anyone is still reading and wondering why I don't also dispose of numbers 30, 31, 33 they are on the sale block. However they may have a tax impact so I am waiting for 6th April. Or I do believe that in the short term there may be a small bounce and I am looking to catch that. I do have 2 on pending sale orders for a certain price.