Thread by @saxena_puru

1) Market sell-off and what I did -

The broad indices tested their February lows today; and the Nasdaq 100 and S&P500 Index stayed above that level.

For a brief period of time, $IWO sliced through its February low but it staged a late rally and closed above that level...

2) Fear was rampant today (VIX briefly spiked to 54 before settling around 42) and growth stocks got crushed; with many declining 8/10/12%! So, today was a flush typically seen towards the end of strong intermediate-term downtrends.

Today's action doesn't mean the market...

3)...has formed its final low - if global business activity comes to a standstill due to the virus, then we may see additional liquidation but today seemed like panic selling!

Due to the hedges, my portfolio remained somewhat insulated but because of the vicious sell-off in...

4)...growth stocks, it still managed to decline ~2.5% on the day - without the hedges, it would've lost ~6-7%!

Given the recent developments; I sold out of my position in $LK at the open today and also drastically reduced my position in $SPCE

$LK was meant to announce...

5)...earnings in mid-Feb and not only did it delay this, it failed to inform shareholders.

As far as I'm aware, there was no Press Release, no announcement of any sorts to confirm the delay and when I emailed IR, it confirmed that a definitive date hasn't been set yet...

6)...Furthermore, a couple of days ago, $SBUX issued its profit warning and confirmed that its China same-store-sales would decline by 50% in Q1! Yet, $LK (even though it operates solely in China) failed to issue any profit warning - instead, the management team...

7)...chose to clamp down in the hope that the storm would eventually pass - not cool!

Mgt. quality plays a big part in my investment process and given the company's failure to communicate with shareholders (especially during a crisis); I decided to book my gains and part ways..

8) Elsewhere, I was also mildly irritated and disappointed by $SPCE's management team.

Not only are they behind their operational schedule, I recently realised that they took down their Investor Presentation (with all the financial projections) from the company's website!

9) This is why I decided to drastically reduce my position in the company.

I've re-invested the above sales proceeds in a rapidly growing, dominant global payments platform Adyen (listed in Amsterdam, $ADYYF on OTC) and also increased my positions in $PDD $ROKU $TWLO ...

10) At this stage, I don't know whether we have seen THE low of this pullback but am using the sell-off as an opportunity to upgrade my portfolio.

The next few weeks/months could be rocky but world-class businesses will continue to thrive in the long run.

The end.