Why This Approach Has Been Crushing The Market Recently: Getting Better Entries Into Volatile Names And Finding The Best Ways To Hedge Them
Portfolio Pulse from David Pinsen
A hedged portfolio created during Thanksgiving week last year outperformed the SPDR S&P 500 Trust ETF (SPY) by more than double over six months. The portfolio included stocks like Affirm Holdings (AFRM), Coinbase Global (COIN), Fabrinet (FN), MicroStrategy (MSTR), Super Micro Computer (SMCI), Splunk (acquired by Cisco Systems, CSCO), and Williams Sonoma (WSM). The outperformance is attributed to a new security selection method and an algorithm for optimal hedging.

May 29, 2024 | 1:14 pm
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NEGATIVE IMPACT
The SPDR S&P 500 Trust ETF was outperformed by a hedged portfolio by more than double over six months.
SPY was used as a benchmark and was significantly outperformed by the hedged portfolio.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Affirm Holdings was part of a hedged portfolio that outperformed SPY by more than double over six months.
AFRM was selected for its high potential returns, contributing to the portfolio's significant outperformance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Coinbase Global was part of a hedged portfolio that outperformed SPY by more than double over six months.
COIN was selected for its high potential returns, contributing to the portfolio's significant outperformance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Splunk, acquired by Cisco Systems, was part of a hedged portfolio that outperformed SPY by more than double over six months.
Splunk, now part of CSCO, was selected for its high potential returns, contributing to the portfolio's significant outperformance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Fabrinet was part of a hedged portfolio that outperformed SPY by more than double over six months.
FN was selected for its high potential returns, contributing to the portfolio's significant outperformance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
MicroStrategy was part of a hedged portfolio that outperformed SPY by more than double over six months.
MSTR was selected for its high potential returns, contributing to the portfolio's significant outperformance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Super Micro Computer was part of a hedged portfolio that outperformed SPY by more than double over six months.
SMCI was selected for its high potential returns, contributing to the portfolio's significant outperformance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Williams Sonoma was part of a hedged portfolio that outperformed SPY by more than double over six months.
WSM was selected for its high potential returns, contributing to the portfolio's significant outperformance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80