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Un Portfolio


Discuss! Chime in on the Un Port's discussion board].

Watch! Read the deep dive theses on the Un Port's Watch List companies.

Tweet! Follow me on Twitter @BryanHinmon.

The Un Portfolio

Company Rec Date Cost Basis 8/25/2011 Price % Return
Medtronic (NYSE: MDT) 11/18/10 $34.68 $33.97 -2.1%
ManTech Int'l (Nasdaq: MANT) 12/3/10 $40.46 $35.74 -11.7%
SAIC (NYSE: SAI) 12/3/10 $15.88 $14.29 -10.0%
Landstar Sys. (Nasdaq: LSTR) 3/15/11 $43.21 $38.15 -11.7%
Insituform (Nasdaq: INSU) 5/18/11 $24.78 $15.15 -38.9%
Aflac (NYSE: AFL) 8/1/11 $45.66 $35.55 -22.1%
Graco (NYSE: GGG) 8/9/11 $35.66 $35.80 0.4%
Autodesk (Nasdaq: ADSK) 8/25/11 $26.25 $25.56 -2.6%

The Un Philosophy

Unknown, unloved and unattractive investments made understandable.

Un-Vesting Defined
• Un-vesting is my way of trying to keep from making stupid decisions based on emotion. 
• Finding investments that are unknown, unloved or unattractive forces me to think
  independently and view the investment for its factual merits rather than of the glitz
  of its story.
The Five Rules of Un-Vesting
•  I'll use the Five Rules as a checklist to help avoid stupid mistakes before
   recommending a stock. Look for it in the Un Port BUY Alerts.

1. Do your homework: know why others are turned off and invest with conviction
2. Have a margin of safety: The market does weird things, MoS is our insurance policy
3. K.I.S.S.: focus on the BIG THREE investment success factors and ignore the noise
4. Diversify: diversify through thought and counterbalancing biases
5. Father Health vs. Father Time: The financial house of our investments must be in order to
   give time for our thesis to play out

About the Un Port

I'll manage the Un Port as a stock-picking service, providing investment ideas each month, until it is fully invested. I'll continuously seek out the best investments for the Un Port and have fun along the way.

Portfolio Structure
Three Buckets, One Portfolio
Portfolio weightings are ideal, but may vary from time to time.
  1. Stock Picks (65%): expect one per month or so, ideally 12 to 15 total
  2. Hedges (20%): cheap ways to neutralize biases and guard agains just being plain wrong
  3. Dry Powder (at least 15%): I'll keep some cash for opportunistic deployment -- adding
     to positions or taking advantage of shorter-term events
Position Sizing
  • Stock picks
     Initial: positions will be 3% or 5% allocations of total capital depending on
              conviction and margin of safety
     Maximum: stock picks invested capital will be capped at 8%
  • Hedges can be any size, up to 20% of the portfolio
  • Dry Powder will ebb and flow depending on opportunities 

The ideal Un Port holding is...
• Unknown, unloved or unattractive
• Cheap in relation to its ability to generate cash
• Run by a candid and invested management team
• Capable of reinvesting profits in projects with adequate returns

Un Port Publications

Stuff You Might Care About

Who am I?

Bryan HInmon, CFA (TMF42). Pleased to meet 'ya. I've been a Fool for a decade, though I only joined the Fool full-time in February 2010. Before taking on my role as an analyst for Motley Fool Pro and Motley Fool Options, I performed equity research and managed money in the world of hedge funds (cue music of impending doom!). Because competitive analysis and valuation are (obviously) inherently exciting activities, I strike that all-important life balance by investing in less-than-exciting businesses. The companies I research are typically unknown, unloved, or just unsexy -- but making money by finding bargains in overlooked areas is definitely un-boring.

I also run the Fool DRIP Portfolio, a similar idea to the Rising Star portfolios but funded with my own money. If you're a fellow DRIPper, be sure to check it out.

Motley Fool Rising Stars

The Motley Fool has handed over $272,000 for 16 Rising Star Fools to invest in whatever way they see fit. Portfolio moves will be communicated on Fool.com, for all to see. The Un Port is my chunk of this change. Questions? Here are the deets.