Portfolio Discussion - End of February 2025
Taking advantage of higher implied volatility; sticking to proven quantitative research
Hi fellow Tortoise,
In this webinar, we’ll talk about:
bi-weekly update on our portfolio performance. Since our Substack’s inception, we’re up 2.06% after transaction costs. The past two weeks have been increasingly volatile for the stock market, but our performance has been markedly consistent. You can find our Portfolio and Transactions Sheet as of February 28, 2025 at the bottom of this blog;
why we don’t like short-term capped downside risk strategies such as the collar.
the popularity of covered-call ETFs, but why they’re not living up to their promises. They’re too generic, and above all: always fully invested strategies. Therefore they cannot provide proactive risk/return management when it matters most.
The goal of our portfolio strategy remains unchanged: 8% annual returns, with below-average volatility, drawdowns, and relatively irrespective of the type of market environment we’re in.
Unsurprisingly, the growth in our premium member count is inversely correlated with market sentiment. And over the past two weeks, premium membership has grown more rapidly. When markets are very buoyant with low volatility, there’s no need to be a bit more strategic. However, if markets stagnate or become more volatile, relying solely on stock ownership may not be enough to achieve attractive returns.