Preface

Hope everyone is having a fun and relaxing summer…

Just kidding, welcome to the thunderdome!

Year-to-Date, our core portfolio is up +23.4% versus +9.6% on SPY (as of August 5th 2024)

This brings our Since Inception return to +101.15% vs SPY’s +26.25% over the same timeframe.

In the past month, we’ve gathered back the outperformance we lost in May/June being underweight mega cap tech back and hedging a bit too aggressively.

Since our last portfolio update on June 2nd, the Citrindex is up 1.49% vs. a loss of -5.76% for SPY.

We all know that the Citrindex has been riding momentum for a while. The thing is - I never became oblivious to this. There wasn’t a moment where I thought that actually, in fact, I was a genius for making some relatively obvious calls and then riding a bull market.

No, like I said at the end of 2023, outperforming should make you more paranoid that you’re wrong - not less.

If you've been subscribed for the entirety of 2024, you'll know that I've had a tough relationship with hedges this year. I'm a strict adherent to the school of "hedge when you can, not when you have to" but that comes along with some unpleasant performance drag as - most of the time - those hedges go to zero. Up until the end of the first half, our hedging activity provided a more than 300bps drag on the portfolio’s returns: