I sold my positions today in UIHC and FNHC today.
Both are Florida based insurance companies. I bought them last year because they were cheap in the wake of Hurricane Matthew. They are both well-run insurance companies and all they had to do to realize their value was for Florida to avoid another hurricane. With a category 5 hurricane on a direct course for Miami, it seemed prudent to sell both positions.
Last year after Hurricane Matthew, FNHC dropped 25% and UIHC dropped 35%. I’m down in both positions, but I decided to cut my losses short as catastrophic insurance losses in Florida seems very likely.
I got out of FNHC at $14.28 this morning. This was a good price because it later plummetted to $12.82 as investors realized the magnitude of the losses it is about to face. I got out of UIHC at $14.43. It closed at $14.77.
This brings my cash position up to $12,800.99, or 26.4% of my IRA. I evaluated my screens this weekend and couldn’t find anything that really excited me. It is a bit frustrating as my preference is to be fully invested. We’ll see if something comes along, otherwise, I’ll wait til I do a major rebalancing in December.
I’m also considering paring back my position in TopBuild, but I decided to stay put for now.
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