Responsible Investor Portfolio Update, August 15th, 2020 | $TCEHY $NEM $BK $SYF $GILD $GRUB $SQQQ $SCO $PCG $LVMUY $LRLCY $PEUGF $ELC.MI $WBD.MI

Another positive week for the global stock markets with Europe over-performing the US. The Italian stock market jumped almost 5% while the Stoxx index gapped 2.77% higher. The Dow and the S&P500 were up 2 and 1%, respectively. The Nasdaq was very quiet and closed marginally higher.

There are increasing calls from investment banks for a potential future over-performance of the Stoxx versus the US Stock Markets which have run a lot: YTD, the S&P500 is up 4.7% while the Stoxx index is down 10% and the FTSE MIB lags behind with a -13,82%. There are exceptions within Europe: for example the Danish stock market being up 15% YTD and currently has a P/E of 31. With our portfolio consisting of European stocks for 68% at present, we are geared to benefit from a possible mid-term rise of the European stocks.

We have had 3 winners this week as $SYF , WeBuild and Elica rose between 5% and 7%. This week’s sell off in gold has negatively impacted on $NEM , down 7%, however this precious metal is expected to rise further in the near future.

$TCEHY continues to be hit by anti-China US policies and, more recently, by the dispute between $AAPL and $GOOG vs Epic Games, the company behind popular video game Fortnite in which Tencent has a stake.

Two of our positions hit the SL price, namely $SCO and $GILD. For the latter it might have just been bad timing as the fundamentals and the valuation remains strong: we might get back in if the earnings continue to grow and the technicals suggest an entry point.

The table below summarises the portfolio performance since inception.

2000814 RIP

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$NEM $BK $SYF $GILD $GRUB $SQQQ $SCO $PCG $LVMUY $LRLCY| Responsible Investor Portfolio Update, July 4th, 2020

Q2 ended with a bang and Q3 started on a positive note. All major markets were up this week as the sentiment continues to be positive despite the concerning news about C-19 in the US and other non-European countries. Note the typical behaviour of the “momo crowd” erroneously reading certain news like the jump in new jobs in the US which however reflects events which occurred in the past rather than focussing on the future like “smart money” does.

Once again the US markets gapped higher, led by the Nasdaq (+4.6% weekly gain), while Europe lagged behind whilst delivering a gain, with the Italian stock market staging at 3.2% gain (#Stoxx +2.0% and #OMXC20 1.8%). Note however that most European indices have a lot more room to recover compared to the US stock market and this may affect the relative weight of our positions going forward. The Copenhagen stock market is up 10%+ YTD and its valuation is getting expensive.

Gold has passed a key resistance level and opened the opportunity for further appreciation: our position on $NEM enabled us to benefit from this move.

Our RI Portfolio was positive this week (+0,6%) but its growth was muted compared to the tracked stock markets because the hedges dragged it down. The markets are so buoyant and the valuations so high that I did not want to sell the hedges as things may change direction after the 4th of July weekend.

Five weeks after initiation we are showing a positive total return of 2.0% beating the Market by 0.6%.

No alerts this week ! I know it is nice to receive them but timing is also important.

This week’s winners in our RI Portfolio were both from Europe: Danske Bank (+6,4% gain) and Inwit (+5,7% gain).

No relative changes between the three currencies of the RI Portfolio.

We now have 15 open positions, 2 of which are leveraged hedges (inverse ETFs). Even in times of high valuations I keep finding cheap stocks and a possible further drop of the markets next week may offer an opportunity to initiate new positions.

The table below summarises the portfolio performance since inception.

2000703 RIP

If you don’t want to miss my alerts, please subscribe to Responsible Investor or follow me on Twitter. I also run an eToro portfolio which currently has 10+ positions and can be accessed via this link.

$BK $SYF $GILD $GRUB $SQQQ $SCO $PCG | Responsible Investor Portfolio Update, June 13th, 2020

Two weeks in, the Responsible Investor Portfolio is up 2.5% while the markets are only up 0.6%: that’s a +1.9% outperformance. As the RI Portfolio has stocks traded over multiple markets, the market performance is calculated as a weighted average.

This past week was particularly volatile and saw a sharp decline in the stock markets on Thursday 11th of June: that day the RI Portfolio was actually up, you can read the details in a previous post. This week’s outperformance is particularly significant as the markets were down 4.9% while our portfolio only lost 0.4% (+4.4.%).

We have made 3 trades this week: we sold CELL.MI for a 7.8% profit and bought $GRUB following rumours about a takeover from JustEat after Uber’s bid hit the wall. So far Grubhub is up 6.9%. The other trade is a hedge on oil.

The relevant currencies (USD, EUR and DKK) were neutral and therefore had no impact on the portfolio.

We now have 10 open positions, 2 of which we intend to keep on a short leash as they are leveraged hedges. There is still a long way to go to achieve a complete portfolio which requires several additional positions as well as a greater diversification across the various sectors.

If you don’t want to miss my alerts, please subscribe to Responsible Investor or follow me on Twitter. I also run an eToro portfolio, which can be accessed via this link.