🚀🚀 May (the 5th month since the launch) also delivered a great performance. 🚀🚀
It only ran out of steam a little in the final week. But in the last 30 minutes of trading it has turned upwards again. I am following the algorithm with Western DIgital ($WDC (+0,36%)), Lumentum ($LITE (-2,27%)), Ciena ($CIEN (-0,72%)), Kioxia ($285A (-0,94%)) and Bloom Energy ($BE (-1,82%)) at the start.
The initial value was approx. 22,700 euros. Of this, 60 euros were lost due to capital gains tax on the switch to Kioxia and there was a capital inflow of 1,300 euros. This capital inflow largely flowed outside the algorithm into 1 SanDisk share ($SNDK (+0,68%)), as SanDisk is now one of the most valuable 100 companies in the world and has shown the most explosive momentum signals in the last 12 months, but is still stuck in the MSCI World Small Cap Index. To my surprise, this will remain the case for the coming quarter, which means that I will retain my "special position" for the time being. So it started at the beginning of May with 6 shares and 23,750 euros. And May flushed almost exactly +21% into the satellite portfolio.
+5,000 euros price gain - 21% up in 30 days 🚀
Who started and who performed how?
- Bloom Energy +3%
- Western Digital +23% 🚀
- Ciena +16%
- Lumentum -5%
- Kioxia +71% 🚀🚀🚀
- SanDisk +36% 🚀🚀
The overall increase is thus very strongly fueled by Western Digital. But Kioxia was the last and thus smallest position size to be added and has overtaken all other stocks with 71%. Ciena has done a stable job and Bloom Energy and Lumentum have stagnated somewhat without harming the portfolio too much. The special position in SanDisk improved the monthly average slightly. So we did everything right.
YTD the momentum performance is at an outstanding +122% TTWROR. 🤯😍
I hope to close above the 30k mark for June.
Here is a general summary of how the portfolio is made up before the stocks for June are published:
It consists of 3 pots:
Pot 1 selects the momentum stock from the MSCI World with the strongest momentum signal.
Pot 2 selects 4 stocks from the top 30% market capitalization (deciles 8 to 10) with the strongest momentum signal.
Pot 3 selects 3 stocks from deciles 7 to 9 with the strongest momentum signal.
It is to be expected that there will be duplications from the various pots. These are not overweighted, but kept simple. This means that there can be between 4 and 8 stocks in the portfolio.
How will the portfolio change in June?
It's nice to see that almost all stocks ended May on a positive note and even nicer to see that there will still be a change. This means that "from below" a stock has achieved stronger momentum than a stock that was held. In my view, this is the strategy's preferred behavior when it comes to switching.
Micron ($MU) (+0,96%) is back, but Dell ($DELL (-0,73%)) will also make it into the portfolio, displacing Ciena. According to the score, Western Digital would also be narrowly beaten by Intel ($INTC (+6,85%)), but due to the 5% holding threshold there is no change. This means that Intel has once again narrowly missed out on the portfolio.
The composition for June follows:
- Kioxia (6,400 euros)
- Western Digital (6,400 euros)
- Bloom Energy (6,400 euros)
- Lumentum (3,650 euros)
- Micron (2,500 euros)
- Dell (2,500 euros)
- SanDisk (1,400 euros) --> not in the investment universe!
Evaluation of the pots:
Pot 1
Kioxia wins by a wide margin ahead of Micron and Ibiden ($4062) (+3,91%).
Pot 2
Kioxia
Micron
Dell
Western Digital
A hair's breadth ahead of Intel, Seagate ($STX (+0,38%)) and Murata Manufacturing ($6981 (-0,89%))
Pot 3
Absolute dominance of
Kioxia
Bloom Energy
Lumentum
ahead of Ciena and, among others, RocketLab ($RKLB (-3,57%) ).
May the games continue.
Only 35X to the million 🥹
