Having some occasional large loss positions (blow-ups) is usual in investing, and investors should not fuss too much about mistakes, but instead focus on taking the lesson and moving forward. The psychology of trying to “make it back” is very human and understandable after a large loss, but pursuing it too aggressively could also be detrimental to long-term wealth, as it leads investors to invest in riskier situations just to try to recover losses. In investing, investors don’t have to make it back the way they lost it, but should instead try to stay rational and consistent.
On the other hand, ZDC is a promising growth name that we like given the business momentum. The company is expected to grow strongly over the next few years (above 50% on average). With that said, a large part of that growth is also priced into the valuation. If growth can be sustained and surprise investors on the upside, we think ZDC has room to grow further. Overall, we think a redeployment of capital from GSY to ZDC could make sense at this point.