Portfolio Management

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Indexes
  1. Palantir
  2. Rivian
  3. Monday
  4. Sofi

Review of week 3

This week was perfect for anyone that was shorting any company that was announcing results, since we saw big names with huge losses after their Q1 earnings calls. Most of them are in the technology industry with high P/E multiples and mainly companies that still are unprofitable. Some of the bigger losers were Upstart, Unity, Palantir, Coinbase,

S&P 500 index closed on Friday with losses of 2.41% for the week. This is the 6th consecutive week with losses, something that has to happen since 2011 (source). That outcome seems decent after the drop of more than 5% until we saw from Monday to Thursday, with the last 2 days of the week bringing some recovery. Apple was a big factor for this drop, as it has a big weight in the index and at some point it was even 10% down for the week.

For our portfolio Palantir had big losses from day one, as even after announcing quite good results with 31& growth, the stock plummeted more than 20% (source). Our hedge positions, though, made the difference we expected, being the only 2 winners currently in our portfolio, with profits more than 11% each.

In turbulent markets like these, we managed to overperform the S&P 500 once again and being better by just 0.05%.

Week 5

Many say that we are in the middle of a market crash. Others say that this is only the beginning, when others disagree and believe that we are closer to the bottom. We should place our portfolio in a position where we can profit from a possible rally this week, but in a way that we will not suffer big losses in the case the market continues going downwards. Thus, we are going to make some changes in order to be prepared for any case.

Week 5 Actions

Palantir

It is time we accept the defeat in our pick at palantir. It is a great company with an interesting future and in case we had a bigger time horizon we would have kept our position, but with the current market situation, it is a bit more expensive and harder to rebounce quick enough for us.

Rivian

We got what we wanted out of this stock. It is currently trading closer to their book value (source) and even though their earnings were quite under the expectations, there is not much more room to fall.

Monday

Monday is a great company, but it falls into the category of companies that still are not profitable and in this case even if we take out R&D expenses. They are having their Q1 earnings call this week and if the trend continues from the previous week, it is going to take a big hit. On the other hand even if they beat the expectations it should not soar that much and we find an opportunity of low risk high reward in this case.

source : https://finance.yahoo.com/quote/MNDY/financials?p=MNDY

Sofi

Sofi is another company that announced great results the previous week. It is also trading really close to their book value of around $5 and if it manages to break the resistance of 7$ we may see a rally.

Current Snapshot of our Portfolio

Unrealised Equity: $9,148.62

Cash Position: $17.85

Total Equity: $9,166.47

Net Returns: -$833.53

Performance: -8.34

S&P 500 performance: -8.39

*The content of this article is not an investment advice. The 10K Project is a challenge for myself and it is for entertainment and educational purposes.