PORTFOLIO UPDATE: +245%

Closing the SQQQ hedge & buying these stocks

Happy Friday,

Big day of activity in the portfolio today. I want to walk you through every trade, the reasoning behind each one, and what the full portfolio will look like when the market closes today.

Quick recap on context. After the major repositioning over the last couple of weeks (selling NBIS, IREN, SNDK, and MU), I built a meaningful cash position and added SQQQ as a tactical hedge. The hedge was designed to protect the portfolio against further weakness in the AI-memory and infrastructure names that I had just exited.

The SQQQ hedge is slightly positive from our cost basis of $40.46. I opened the hedge because I was expecting a bit of panic and the market has chopped sideways. So it wasn’t a super profitable trade, but we also didn’t lose money and because of the way the SQQQ decays, I don’t want to hold it over the weekend.

Even though I think the broader market is overvalued and we could certainly see a pullback, some very high quality companies have pulled back a lot and are currently trading at what I believe very opportunistic prices.

With that in mind, I think it’s a good opportunity to build positions in a few companies and look to add opportunistically.

I’ll cover everything below, but first, a performance update.

Performance Update

Total return since inception in August 2022: +245%

CAGR: 38%

1-year return: +106%

YTD return: +46%

1-month return: +2%

S&P 500 over the same period since inception: +84%

The portfolio is roughly 160 percentage points ahead of the S&P 500 since August 2022

Here’s exactly what I’m doing before the market closes today.

1. Closing the SQQQ hedge in full

2. Adding 2.5 percentage points to AMZN

3. Adding 2.5 percentage points to MELI