Dear partners,
The month of April saw the portfolio gaining 2.30%, bringing the portfolio's year-to-date performance back into the green at 1.42%.
Over the past 30 days, the portfolio has closed a total of 9 positions, all in profits ranging between 0.10% to 25.72%.
Long time partners would notice a familiar position the portfolio has again bought into, seemingly contradictory towards a post I made 6 months ago. They would and should then, rightfully I might add, demand a statement of accountability.
At the end of October 2025, I spoke at length about noticing " ouroboros-esque behavior within the technology industry, particularly with regards to AI." I expressed concern, particularly towards the weight the tech industry had within the S&P500. (The post is still pinned for your, and my, reference)
The portfolio's positions within the S&P500 were pulled, reinvested into the RSP equal weighted index, and most positions in the Mag 7 companies were also sold.
Alderique has since sold its investments made into RSP, and reinvested profits and principle amounts back into VOO (the vanguard index tracking the S&P500).
I had a few main reasons that spurred this particular course of action.
Firstly, and most glaringly, I must admit to having my doubts after continuous research into material reinforcing one particular point of view and not looking into the converse. That was a major mistake on my end, and I do apologize for that. I will do better moving forward. I still do maintain skepticism, but these are at a level of comfort I have since been content with.
Secondly, and also extremely importantly, the difference in expense ratios (maintenance fees). The RSP has an expense ratio of 0.20% compared to VOO requires 0.03%. That essentially makes the RSP over 6 times more expensive then the VOO. These seemingly trivial differences when compounded over a larger period of time, become substantial.
Thirdly, research also demonstrated that having imbalances is nothing new to the S&P500. For instance, in 1990 before most of the Mag 7 really took off, the index was led by companies such as IBM, Exxon Mobil and General Electric. A major caveat here is that the current level of concentration within the index has doubled since 1990.
In essence, the main question I had to ask myself was: Is paying 6+ times the expense ratio worth concerns of the S&P500's level of concentration, whose weightage is influenced by free market economics?
I decided it was not, and thus moved back into VOO.
Admittedly, lacking any meaningful investments in the Mag 7 during this particular recovery has seen the portfolio's performance generally flatline year-to-date as capital flows back into tech. This would however, be something acceptable to me as the portfolio still enjoys minor coverage of said sector via the index.
If you've made it this far into this post, thank you. I greatly appreciate you reading my thoughts, verbose as I am. We have since gone further in-depth into the usual modus operandi, that being making investments into extremely boring companies, and I fully intend to keep the portfolio's excitement level akin to that of decaf herbal tea.
Thank you for your continued vote of confidence, and all the best in your investment/trading endeavors.
Alderique. ... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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Sun Aug 16 2026 16:24:35 GMT+0000 (Coordinated Universal Time)
