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Portfolio Update - 9M 2022
The below is a summary of the performance of our portfolio during Q3 2022 and Year to Date (“YTD”) as of 30 September 2022.
We initiated our portfolio on 28 January 2022.
What should you expect from our quarterly portfolio update?
Our portfolio allocation as provided from our broker.
Information on new or increased positions and shares sold.
Performance on a YTD basis as provided by our broker. Our broker currently uses the time weighted rate of return (“TWR”) which eliminates the distorting effects on growth created by inflows / outflows. Take a time to read this Investopedia - Definition.
Quarterly performance calculated by us using the monthly TWR provided by our broker.
A comparison of YTD performance relative to S&P 500 as provided by Yahoo Finance.
A brief explanation for each transaction that took place in the latest quarter.
What should you know before reading our quarterly portfolio update?
Our portfolio is just shared for transparency purposes. This is not a financial or an investment advice. Investors should make their own research and consult their registered investment advisor or financial advisor before taking any investment decision.
Past performance is not indicative of future returns.
Our YTD total return as of 30 Sept 2022 stands at a negative 11.2%, whereas the Q3 return for 2022 stands at a negative 1.98%.
During the first 9 months of 2022 we did better than the market, however our portfolio still trades on the negative territory. As of 30 Sept 2022, S&P 500 fell by 24.8%.
3. Portfolio Summary
The portfolio as of 30 September 2022, consists of 9 stocks with GOOGL 0.00%↑ and META 0.00%↑ being the largest positions with an allocation of 9.2% and 6.6%, respectively. On the other hand, ADSK 0.00%↑ , ABNB 0.00%↑ and ZM 0.00%↑ account for less than 2% each and are considered as tracking positions.
During the latest quarter the cash allocation was reduced from c. 67.7% to c. 61.5% due to the addition of two more stocks ($ZM and $GRG.L) and due to an increase in existing positions when there was a pullback in price ($GOOGL, BKNG 0.00%↑ and KLAC 0.00%↑ ).
$META together with PYPL 0.00%↑ are the worst performing stocks, down by 29.8% and 33.7%, respectively, whereas the best performing stocks were $ABNB and $ADSK with a gain of 11.5% and 7.4%, respectively.
Source: Broker, StockOpine analysis
Source: Broker, StockOpine analysis
4. Portfolio movements in Q3 2022
Why did we buy the new stocks?
Greggs Plc – Strong competitive positioning in a fragmented market, expectations to grow number of stores and revenue per store as they tap on evening trade and delivery as well as valuation.
Write up: Greggs Plc - Investment thesis
Zoom Video Communications – Growth of net dollar expansion rate for Enterprise customers and optionality through Zoom Phone and contact center. In the post shared on Sept 14, 2022 we stated that we will not initiate a position at $79. As the price fell even further, we decided to open a tracking position on Sept 22, 2022 at $75.
Write up: Zoom - Snapshot
Why did we add to existing positions?
Our conviction (shown below) did not change, and price movements gave us an opportunity to reduce our cost base.
Alphabet – Strong network of the Search Engine business and of YouTube and the continued momentum in Google cloud growth.
Write up: Alphabet - Snapshot
Booking Holdings – Leader in OTA market, expected rebound in the travel industry, optionality (flights, rent a car, experience etc.) and valuation.
Write up: Commonstock Competition Booking
KLA Corporation – Leader in the Semiconductor Metrology and Inspection equipment (4x nearest competitor), WFE market expectations, CAPEX plans of the big players (Intel, TSM and Samsung) and high returns on capital employed.
Please note that we may have more write ups for each stock than the ones shared above. If you are interested to read more just check our page.
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Disclaimer: The team does not guarantee the accuracy or completeness of the information provided in the newsletter. All statements express personal opinions based on own financial and business analysis. Any estimates or forward-looking statements made are inherently unreliable. No statement of opinion is an offer or solicitation to buy or sell the financial instruments mentioned.
The content of our newsletter is not a trading or investment advice and we do not provide any personal investment advice tailored to the needs of any recipient. The information provided should not be considered as a specific advice on the merits of any investment decision. Securities trading involve risk and you might lose your capital and/or incur other damages. Investors should make their own research and consult their registered investment advisor or financial advisor before taking any investment decision.
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