July portfolio update

We're in August now, which means it's time for another portfolio update.

I added one new position in July, which was Joban Kaihatsu (1782.T), a Japanese civil engineering firm. Joban has a negative enterprise value and earned about 4,600Y per share in the three years to March 31, 2020. (For reference, the shares last traded at 5,310Y.) I don't have any particular insights into the company besides the fact that it is extraordinarily cheap. I investigated the company after reading about it on Jacob McDonough's blog, which I can thoroughly recommend to people interested in cheap Japanese stocks.

Naked Wines, one of my larger holdings, released another positive trading update in July after YOY sales growth of 67% in June. Last week, they announced that July sales were even stronger, and that retention and margins had improved. Naked has been a clear beneficiary of social distancing restrictions and the proposition for customers should only become stronger as the company scales. The stock has been running hard, and ended July slightly below where it started.

All in all, the portfolio ended the month down 0.73%. My results and those of my benchmark — the S&P/ASX 200 Franking Credit Adjusted Annual Total Return Index (Tax-Exempt) — are summarised in the table below.

Please note that my returns are pre-tax, include franking credits, and assume dividends are reinvested. These figures have not been audited. Additionally, I do not account for cash in the portfolio. The net result is that my performance is likely somewhat overstated, although I tend to be fully invested. The SPAX2F0 is simply the pre-tax total return of the S&P ASX200 Accumulation Index adjusted to include any franking credits received. I have unitised my portfolio to assist in calculating performance. 

	August 3, 2017	July 31, 2020	Since July 1, 2020	Since Inception	Annualised
G&W Portfolio	1.0000	1.5298	-0.73%	52.98%	15.25%
Benchmark (SPAX2F0)	61,250.80	74,504.02	1.79%	21.64%	6.76%