February Update

The rout in oil prices has continued since our last post - but recently seems to have stabilized around $50 with increased volatility.

Accordingly, our oil positions continued to take a beating on the way down - PTAXF especially. BP has rebounded somewhat since it hit bottom. We will continue to hold these securities for now. Oil is cyclical, and oil prices will rise again - we just can't predict when. Patience as a virtue is especially relevant in this case.

We opened a position in CVR Refining (CVRR) - an MLP that owns two refineries and some other assets. We did not open a large position - roughly 2%. Since purchase, it has already appreciated roughly 15% and we will continue to hold as we believe further price appreciation and distributions will provide a solid return going forward.

There has been an interesting array of news flowing recently, with Greece's difficulties, the continued/re-realized dominance of Apple, potential raising of interest rates, predictions of oil prices, various opinions on the strength of the US economy, etc, etc. The hard part is separating the wheat from the chaff. It is important for us to not make investment decisions based on macro factors. However, it IS important to realize when macro events may affect the value of various securities and act accordingly.

More to come.