Paper Portfolio – December 2020 Update

Entering the month, the Paper Portfolio maintained a defensive posture given election uncertainties. We began to take this defensive posture starting late in the summer, which allowed us to escape the volatility of August, September, and October largely intact. When we chose to further maintain our defensive positioning during the last update, Capital Flywheels argued … Continue reading Paper Portfolio – December 2020 Update

Paper Portfolio – November 2020 Update

The Paper Portfolio’s continued defensive positioning during October turned out to be an appropriate move. The Paper Portfolio returned 1.36% vs -2.65% for the S&P500, despite being skewed towards well-owned names. This brings year-to-date returns to 74.38% vs 2.64% for the S&P500. The initial shift into a defensive position at the end of August helped … Continue reading Paper Portfolio – November 2020 Update

Paper Portfolio – August 2020 Update

Like June, July was a fairly volatile month with investors trying to decide which way to go. The Fed’s continued loose monetary policy supports value reflation trades, but economic growth remains weak with elevated unemployment. Weak economic growth tends to support secular growth stocks (more certainty) and companies with strong balance sheets (more defensive / … Continue reading Paper Portfolio – August 2020 Update

Paper Portfolio – July 2020 Update

The Paper Portfolio did very well in June. Initially, the Paper Portfolio lagged the index early in the month as investors furiously bought stocks related to economic reopening (including a number of very questionable bankrupt companies like Hertz)…the Paper Portfolio, unfortunately, has limited exposure to that theme. But, fortunately, our timely addition of Boeing allowed … Continue reading Paper Portfolio – July 2020 Update

Paper Portfolio – March 2020 Update

During February, the Paper Portfolio experienced volatile performance as global equity markets reacted to the pandemic potential of COVID-19. The portfolio ended the month down 1.32%, reversing the strong gains delivered in the first two weeks of February. While the reversal was disappointing, the Paper Portfolio continues to perform very well relatively and is well-positioned … Continue reading Paper Portfolio – March 2020 Update

Paper Portfolio – December Update

During November, the paper portfolio outperformed the S&P500 by 0.92%. This number, however, masks the underlying strength of the portfolio since ~40% of the value is still allocated to cash. The stock-only portion of the portfolio outperformed the S&P500 by 3.89% with significant strength across almost all holdings except for Uber, Match, and Activision Blizzard. … Continue reading Paper Portfolio – December Update

Paper Portfolio – November Update

During October, the paper portfolio continued to show some divergence vs the S&P500, underperforming by 1.35%. While a number of the stocks recovered some of the losses experienced during September, several other stocks continued to experience weakness. Nonetheless, each of the underlying businesses remain strong. This portfolio should be well positioned to outperform sometime in … Continue reading Paper Portfolio – November Update