For June 2010, our portfolio returned -3.83% compared to -5.62% for the S&P500. Our portfolio outperformed the S&P500 by 1.79%.

Portfolio Movers

Forest Laboratories (FRX) was up 6% in an overall down month. Friedman Industries and Archer Daniel Midland (ADM) were up a little over 2% each. On the other hand, Kindred Healthcare (KND) was down 17%. They said revenues will be lower due to changes in Medicare. AAR Corp (AIR) went down 15% after dropping 19% in May due to lower earning guidance. Omega protein (OME) and LMI Aerospace (LMIA) were both down about 9.5%.

Transactions

Sold EMMS at $2.28: As we mention in our last post, we had bought EMMS at $2.25 because there was a tender offer outstanding for $2.4. However, we needed the cash to get into other opportunities. So we sold EMMS for $2.28 for a gain of 1.33%.

Sold RIG at $48.20: We decided to sell RIG since there was so much uncertainty about the cost of the oil spill for RIG or BP. It was a loss of 10.5%.

Bought more GILD at $34.9: Gilead makes up almost 17% of our portfolio with an average cost of $38.39.

Bought more AMN at $60.7: We like Ameron International because it has a strong balance sheet. It now makes up 11.16% of our portfolio with an average cost of $61.57.

Bought LACO at $1.43: Lakes Entertainment Inc runs Indian Casinos properties in various part of the country.  The stock has been hammered as of late because they have lost money in the last two quarters. However, the balance sheet looks pretty good and they had positive cash flow in those quarters. So we decided that it was worth the risk at $1.43. It makes about 3% of the portfolio.

Bought SRT at $3.75: StarTek, Inc. provides business process outsourcing services to the communications industry. SRT had a bad quarter so it was beaten down. But balance sheet and cash flow still looks good. May be it will turn around next quarter. It makes up 3% of our portfolio.

With all these transactions and new contributions, our cash position is now at 14.83%. This includes the cash we are supposed to receive for OSIP, which was bought out.

Our partnership NAV for the month ending June, 2010 is $9.87.