Portfolio Update: October 2020

There are a lot of ideas on my desk to write blog posts about. Specifically, I want to be able to focus more on in depth stock analyses. Yet, I still want to provide you with updates on what I do with my own portfolio as I believe it is important to show you what skin I have in the game myself. Therefore, I decided to make these portfolio updates a little bit shorter and more to the point. In short, this means skipping the special feature section and sticking with the moves, graphs and numbers.

In case you have questions on some of the moves or feedback for the current set-up of these updates, please leave them in the comments below.

DISCLAIMER

THE INFORMATION ON THIS WEBSITE IS NOT INVESTMENT ADVICE AND DOES NOT RELATE TO YOUR PERSONAL FINANCIAL SITUATION, YOUR KNOWLEDGE AND EXPERIENCE, YOUR INVESTMENT PLANNING, INVESTMENT GOALS AND INVESTMENT HORIZON, AND YOUR RISK PROFILE AND RISK TOLERANCE. THEREFORE, WHEN MAKING FINANCIAL DECISIONS, PLEASE CONTACT A FINANCIAL ADVISOR AND DO YOUR OWN RESEARCH. THIS BLOG IS FOR ENTERTAINMENT PURPOSES ONLY. YOU ARE RESPONSIBLE FOR YOUR OWN INVESTMENT DECISIONS.

Overall Performance

The overall performance for the month of October was -2.92% compared to -2.63% for the benchmark MSCI World Index. This marks the second month in a row with a negative return. Cumulatively, the portfolio has a cumulative return this year of 22.25% compared to the benchmark MSCI World Index of -4.62%. As a fun fact, this was the first month of 2020 where the portfolio underperformed the benchmark.

Asset Allocation

The only change in my asset allocation was that I added to my gold position again, which I decreased in August and September. I made this decision simply because the outlook for the economy worsened in my opinion as a result of the resurgence of covid-19 cases (and thus sustained need for stimulus measures).

As a result, my gold allocation went from 29.4% to 33.8%. The individual stock allocation decreased substantially because of underperformance, resulting in an increase in the allocation to the other portfolio components.

Individual Stocks

There were quite some changes in the individual stock portfolio, and the performance was also quite mixed during a quite turbulent month in the markets.

Individual Performance

Top 3:

  • Publicis Groupe increased by 8.05% after solid Q3 earnings ($PUB.PA)
  • Ebara Corporation continued its recovery and gained 3.54% ($EAR.F)
  • Boskalis Westminster also continued its recovery with a gain of 2% ($BOKA.AS)

Bottom 3:

  • Flow Traders reported earnings that disappointed investors, and decreased by 17.44% this month ($FLOW.AS)
  • Nikon was sent down another due to further woes of the pandemic 9.01% ($NKN.F)
  • Ahold Delhaize its usual temporary love with investors lost a bit of steam and the stock lost 7.6% this month ($AD.AS)

Portfolio Moves

New Positions:

  • I bought a first small stake in Microsoft after it won the S&P 500 Major League ($MSFT)
  • I bought some shares in Virtu Financial to diversify in the industry given the currently large portfolio position in Flow Traders ($VIRT)

Increased positions:

  • I heavily increased my position in Flow Traders
  • I built my position in Bell Food Group into a normal sized position ($BELL.SW)

Decreased positions:

  • I decreased my position in Boskalis Westminster after it gained a lot during the month
  • I decreased my exposure to HelloFresh because of the large volatility in the stock price ($HFG.DE)
  • I decreased my exposure to Ebara as it gained a little and I am still a little unsure as to how it will handle the pandemic in the short-term
  • I decreased my position in Signify to take some gains off the table ($LIGHT.AS)

Exits:

  • I sold my Suez position after it gained a lot after the take-over rumors from Veolia ($SEV.PA)
  • I likewise sold my Veolia position, since I think they would heavily overpay for a minority stake (including a lot of troubles) right now ($VIE.PA)

As an honorable mention I both bought and sold shares in Nano-X ($NNOX). I wrote a post about hype premiums and fraud discounts, but I noticed the hype with Nano-X was, at least for now, not big enough. The result was as good as break-even, so in hindsight it was nothing more than a fun ride.

Additionally, many of the decreases in the portfolio resulted from stop-losses that were triggered. I set these stop-losses because I expected some headwinds in the markets, as I laid out in this post.

Wrap-up

If you have any questions about some of the moves, please let me know in the comments. I will continue to bring more content to this website, as I have done last month as well. Any recommendations for topics or stocks to take a look at are also welcome. Cheers!

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