All three Blue Harbinger portfolios (Income Equity, Disciplined Growth, and Smart Beta) continue their long-term track records of outperforming the S&P 500. This report provides a brief update on August performance, and shares three attractive investment opportunities currently trading lower and thereby providing attractive entry points for investors.
For starters, here are the current holdings (and performance) for each of our three Blue Harbinger Strategies.
Blue Harbinger Income Equity:
Blue Harbinger Disciplined Growth:
Blue Harbinger Smart Beta:
Attractive Entry Points:
We had several of our current holdings decline in price in August thereby creating a more attractive entry point for new investors, in our view. For example:
1. Triangle Capital (TCAP), Yield: 13.4%
TCAP shares pulled back sharply during the month. You can read our write-up on the pullback (and why we’re continuing to hold our shares) here:
Also worth noting, TCAP is a business development company, and we reduced our exposure to that industry with our sale of Prospect Capital (PSEC) as shown in our earlier CVI holdings table. PSCE has performed absolutely terribly since we sold it, and we really dodged a bullet on that one. You can read our decision on why we sold PSEC before its big price decline in these two articles:
- 3 Overcrowded High-Yield BDCs: Prospect, Main Street and Fidus
- Prospect Capital: Big Dividend, Big Risks
2. ADP (ADP), Yield: 2.1% (Dividend Aristocrat)
Stalwart, blue-chip, low-beta, ADP pulled back in August after a powerful earnings announcement and big gain in July. The stock price has been unusually volatile after hedge fund Pershing Square has disclosed a position and is seeking to make changes to management of the company. We continue to believe ADP is an extraordinarily safe company that will continue to grow as the economy grows. Its HR and payroll processing solutions are the gold standard for most large companies around the globe, and it has increased its dividend more than 25 years in a row, thereby achieving “dividend aristocrat” status. We are long ADP in our Blue Harbinger Income Equity portfolio.
3. Tsakos Energy Navigation (TNP), Yield: 4.4%, Preferred (TNP-E) Yields 9.1%
Tsakos common share were down 7.2% in August, thereby creating an attractive entry point, in our view. If you don't know, Tsakos is a provider of international seaborne crude oil and petroleum product transportation services. We own the common, and we've written about the attractiveness of its common and preferred shares in the past:
We believe all three of our Blue Harbinger portfolios are well-positioned for continued success, including attractive income and attractive price appreciation.