Capitalist Roader Fund: So near and yet so far (Hold)

Well, we almost did it. We were going to sell flailing riboflavin producer Hubei Guangji Pharmaceutical (000952.SZ) after just over a month in which the stock fell nearly 40%. It was either that or Anhui Conch (600585.SH), which is down a bit more than 46%, but lost most of that in June and July. Unfortunately, as the internal battle played out between our long-term and short-term strategies, we missed the 3 p.m. deadline to place either buy or sell orders – so we’ll have to wait until Monday.

It’s been a relatively good week for the fund. We’re up about 3% over last week, down 33.02% since June 3, slightly worse than the market overall in that time (the SCI is down 30%). Friday was a particularly good day, with Anhui Conch rising almost 4.5%, and even Hubei Guangji up more than 4%. Old faithful ICBC (601398.SH) also rose modestly, and is down just 3.33% from mid-June.

On Monday, we’ll risk cracked lips and a low red-blood-cell count, and get out of riboflavin for good. We figure we can deal with losing around RMB670 on the investment since with a bit of extra cash freed up, we’ll be able to look for some better deals.