I've been doing a bit of portfolio spring cleaning this month, have sold Redrow and Aviva. The catalyst for the Aviva sale was a downbeat article in the Sunday Times, turned out to be good timing as they announced a dividend cut a few days later and the share price fell substantially. I suspect this is part of a 'kitchen sinking' operation from their newish CEO to make himself look better over the medium term for 'growing' the dividend once again and returning the company to profit. This is lame, self serving management in my opinion. Anyway I managed to sell at 346p which banked me a nominal capital gain; it's been a decent investment though as I've had 3 years of bumper dividends circa 8%.
I bought Redrow just over two years ago, they were the last house builder I purchased, and the sector had already risen quite a bit by then, but I still made just shy of a 50% profit on them.
I've now split the proceeds two ways. Last Monday I bought some more Fidelity Special Situations China Investment Trust, have about 5% of my portfolio in this now and think it will do well in the long run. It's already up a bit from the 91.5p I paid. With the other half of the money I bought Cairn Energy today at 291p. They were tipped in the Investor's Chronicle a month ago due to their decent discount to NAV. They've had a torrid few years and are out of favour with investors, but have made some changes that should bring some stability to revenue. I'm hoping they will rise on good news over the next few years.
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