[Premium] Exiting 1 Position and Starting 1 New Position
Portfolio Weights are Also Updated
Pro-forma returns YTD, as of Feb 7 the Premium Portfolio has delivered 8.4% total return vs S&P 500 at 2.5%.
Hello Members,
I have posted an updated Premium Portfolio with changes in the holdings as well as revised portfolio weights.
The following changes are of note:
Adding a new stock to the portfolio. We originally reviewed and liked this stock back in October last year but our correlation analysis did not allow us to include it in our portfolio at that time. Recently, the stock price has become significantly more compelling, thereby favoring this stock over one of the other stocks we currently hold (see #2 below)
We will be exiting out of TNL 0.00%↑ . While we have not reached the target price, we have received about 13% price return in 4 months, which is very respectable. We are exiting to make way for the stock (in #1 above). Please note that our Kelly Growth Optimal portfolio allocation process takes expected returns and correlations between stocks into consideration, to give us the portfolio with the highest risk adjusted potential return.
One of our holdings has had significant price rise in the last 2 weeks. This was due to material improvement in business and fair value. We have increased the target price of the stock and we have adjusted our portfolio weight since our expected returns have now gone down (even with raised intrinsic value as the stock price has risen quite a bit).
There are adjustments to portfolio weights of other stocks to account for relative changes in prices and correlations.
The updated portfolio is posted below after the paywall, as well as in the Premium Portfolio section.