North Fork Investors

This blog tracks the value-oriented investments, both long and short, of two friends and investment partners. We will manage a model $100K portfolio beginning in February 2009. Detailed analysis is provided for each pick. Please see below for links to spreadsheets which detail our performance, current portfolio and historical transactions, as well as a link to our month-end OptionsXpress virtual portfolio (which we use because of its accurate pricing, commissions, and tracking functions).

Thursday, May 7, 2009

WSP Holdings Ltd.

Buy Price: $3.48

We have decided to purchase a roughly 5% stake (1450 shares for $5,046) in WSP Holdings Ltd., a Chinese manufacturer of oil country tubular goods (OCTG) which are used in oil and natural gas drilling and extraction. Please check back for a full write up about this investment.

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Our Philosophy

We seek to invest in "good" companies trading at cheap (or at least reasonable) prices for a long period of time. "Good" to us means the ability to earn a high return on invested capital while maintaining a protected market position. Our long investments should have a sustainable, easy to understand business model, and should be conservatively capitalized (with limited exceptions if we believe reward greatly outweighs risk). Growth is desired, but not necessary. In this sense we are "value" investors in the tradition of Graham, Dodd, Buffett, Munger, Klarman, and others. We will maintain a concentrated portfolio of longs which we believe have the capacity to substantially outperform the general market over a multi-year time horizon.

On the short side an inflated price is necessary but not sufficient. We prefer shorts that involve troubled business models, excess leverage, with potential near-term catalysts.

Please feel free to post any comments, questions or criticism.

North Fork Investors

Thursday, May 7, 2009

WSP Holdings Ltd.

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