How to manage a Billion Dollars — Ep.5 — July week 2, again.
Thursday :
Just as a reminder, we ended last week with a fund value to a total of € 1.214 Billion after interest and other fees.
Wednesday was a eventful day, our bond inventory value first went down, then back up again. And then Oil took a 3% hit, so our inventory value was slightly down. It’s alright since we are in no rush to sell our inventories just yet.
Oil is still down, so we’re down -$20 Million on our total inventory value. We are keeping the cash from the purchase agreement we made (since it won’t be honored, and we got a $2.3 Million payment from our hedge (insurance) for the week. Tomorrow we will have to count our total barrels available and prepare the sell agreements for next week.
Our small silver position is up $1.6 Million. I won’t be renewing the inventory for next week.
Our market insurance activity is up $30 Millions, with $15 Millions still to go by tomorrow. It’s a great cash generating business to be able to afford the up and downs of commodities and bonds without stress.
Our 10years US government bonds are up $1.9Million. All the purchase agreements and the sell agreement I initiated at the beginning of the week expired worthless, since nobody wanted to sell them to me at a lower than market price. We collected $1.6 Million from these agreements. I have initiated another sell agreement at today’s price for tomorrow since I want to get rid of my inventory, we collected $800k for waiting until tomorrow afternoon.
We also sold a futures contract position on the 10Year bonds, making another $1 Million.
Our 30 years US government bonds inventory is up $8 Millions today. Similarly to what happened with the 10 years bonds, all our agreements expired without initiating a sell or a buy. Therefore, we kept the cash we were paid for waiting : an approximate of $10 Millions.
I will initiate a sell contract for our inventory, at today’s price, which would execute tomorrow. We collected $2.6 Millions for waiting until tomorrow.
Similarly, I am placing a buy agreement for tomorrow, at a slight discount. I collected $450k for waiting.
We lost -$2 Million on our Gold position, I made a mistake when organizing the buying and selling, and the orders did not go through at the rate I needed. I had to close the position early to avoid having to jump around and try to defend it.
I will start selling some insurance for next week, since these orders are large and take a while to complete, and we’ll wait for the Federal Reserve’s Chairman’s speech.
Thanks for reading.
Yacine Daoud.
