Preface
Hope everyone is having a fun and relaxing summer…
Just kidding, welcome to the thunderdome!
Year-to-Date, our core portfolio is up +23.4% versus +9.6% on SPY (as of August 5th 2024)
This brings our Since Inception return to +101.15% vs SPY’s +26.25% over the same timeframe.
In the past month, we’ve gathered back the outperformance we lost in May/June being underweight mega cap tech back and hedging a bit too aggressively.
Since our last portfolio update on June 2nd, the Citrindex is up 1.49% vs. a loss of -5.76% for SPY.
We all know that the Citrindex has been riding momentum for a while. The thing is - I never became oblivious to this. There wasn’t a moment where I thought that actually, in fact, I was a genius for making some relatively obvious calls and then riding a bull market.
No, like I said at the end of 2023, outperforming should make you more paranoid that you’re wrong - not less.
“Our thematic equity baskets have done pretty well, and I’m happy that’s the case. But, if I’m being honest, there’s nothing in trading that makes me more paranoid than being right.”--Citrini
If you've been subscribed for the entirety of 2024, you'll know that I've had a tough relationship with hedges this year. I'm a strict adherent to the school of "hedge when you can, not when you have to" but that comes along with some unpleasant performance drag as - most of the time - those hedges go to zero. Up until the end of the first half, our hedging activity provided a more than 300bps drag on the portfolio’s returns: