Bad News Hit 2 Holdings - Here's What I'm Doing
Portfolio Update #18 📊
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Portfolio Strategy and Update
Subscribers get the full, uncensored version of this text further down.
Even without naming every holding, there should be plenty here to chew on.
Let's dive in.
The portfolio is up 22.7% in 2025 so far. The market, meanwhile, has returned about 10%.
These last few weeks have been relatively quiet since we initiated positions in [Company A] and [Company B].
You can see our thesis for both here:
That said, news has been flowing for several of our holdings.
[Company C] caught some turbulence after Bloomberg reported the company's games had been distributed in banned markets, citing a filing submitted to a U.S. court.
The stock took a sharp hit.
My take?
Noise.
These allegations have been circulating since 2021 without regulatory action. A previous investigation by New Jersey's gaming authority concluded in 2024 with no penalties. The company maintains it doesn't control where operators make its games available. The fundamentals haven't changed.
[Company D] also reported earnings.
Overall, I wasn't particularly happy with them - especially the loss of a major contract. Revenue fell 3% with a troubling 15% organic decline.
However, the stock sits in our coffee can portfolio - we're holding for the long haul.
We'll monitor how the acquisition strategy develops, but at current portfolio sizing, we're comfortable.
Over the next few weeks, we aim to raise some cash and add to [Company E], [Company C], and perhaps a small amount to [Company D].
Apart from that, we're happy with our holdings and continue researching our high-interest watchlist. You can see that list of 8 stocks here:
Full earnings summaries for portfolio companies will be coming out on Schwar's Radar next Wednesday.
Worth noting: we don't believe in acting on earnings releases immediately. Too much pressure and noise in those moments to make clear decisions. We'd only move after earnings if the market's reaction seems like such an overreaction that it creates a margin of safety.
Have a great weekend.
Dom
Schwar Capital
Overall our annualised TWR now sits at 29.84%.
Statement of Assets
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