Ten years ago, fresh out of business school, I fell victim to the allure of the investment industry. Bloomberg terminals, complex spreadsheets, and the prestigious CFA designation seemed like the key to unlocking market secrets. Naive and ambitious, I dove headfirst. Like my peers before me, I envisioned myself as another “Master of The Universe”, predicting the future with pinpoint accuracy. However, experience shattered that illusion…
The reality is the finance world can be oversaturated with complexity and jargon that often misses the mark. The most successful investors I’ve met (embarrassing Howard Mark’s story to come!) weren’t reliant on fancy formulas. Instead, they wielded common sense, a healthy dose of curiosity, and a deep respect for identifying mispricings. They didn’t claim to hold all the answers.
So, as part of the so-called “Market Participants”. It’s time to hold myself accountable. Show me the money, as they say.
Let’s talk results.
In the past ten years, my focus has shifted significantly. Since taking over institutional money two years ago, my portfolio has outperformed the S&P 500 by 57%. A 48% return annualized with no Magnificent 7, AI or Bitcoin exposure.
I’ve abandoned the technical analysis mumbo jumbo from my early days – Fibonacci retracements, RSIs, and moving averages – they’re out. Though, in hindsight, a little Bitcoin wouldn’t have hurt! Instead, I’ve found success with a balanced approach that leverages the power of compounding in durable businesses, capitalizing on event-driven opportunities, and employing derivatives tactically for strategic risk management. Ultimately, it’s about shaping returns to fit my goals.
I built a strong foundation during the 2022 bear market, snapping up quality companies like Aspen Technology, Ferrari, and IDEXX Labs at attractive valuations. As the market rebounded, I shifted my focus towards alternative strategies, particularly event-driven investments. Companies like Liberty Media, Ambase, and Paramount have the potential to benefit from upcoming catalysts in 2024.
To manage risk, I also employed derivatives strategically. A bear call spread on SiriusXM, and going long volatility on Spirit Airlines has paid off handsomely while protecting on the downside.
The world of investing can seem intimidating, but the truth is anyone with a curious mind and a willingness to learn can participate. It’s not about fancy titles or backgrounds – successful investors come from all walks of life. Your journey starts with research and putting your knowledge to the test.
I’m incredibly grateful for the support of my subscribers, who have shared, liked, and offered feedback during my formative years. Your engagement fuels me. Detailed information about the Under the Radar portfolio can be found here, and a link to my LinkedIn here or (X/Twitter).
Disclaimer:
The information and opinions expressed on this blog are for informational and educational purposes only and should not be construed as financial advice, investment recommendations, or solicitations to buy or sell any securities.