Hi, I'm sending a portfolio update for May. During May, SPY advanced approximately +6.3%, closing at all-time highs. My portfolio returned +1% for the month, a gap that is largely explained by portfolio composition rather than execution.
The May rally was largely a semiconductor story. The PHLX Semiconductor Index (SOX) is up over +65% YTD, and semiconductors now represent ~18% of the S&P 500, more than double their weight at the dot-com peak. When a single sector drives the index this aggressively, any portfolio built around different convictions will lag in the short term. My framework focuses on quality compounders with durable earnings and normalized valuations, a positioning decision that I continue to hold with conviction.
I continue to hold and accumulate positions in Microsoft ($MSFT (Microsoft)), Meta Platforms ($META (Meta Platforms Inc)), and Netflix ($NFLX (Netflix, Inc.)), with META as my highest-conviction name. With 96% of analysts rating it a Buy, a consensus price target implying over 30% upside, and a ~18.5x forward P/E despite 33% revenue growth, it offers one of the most compelling risk-reward profiles in large-cap tech today.
Enterprise software ($CRM (Salesforce Inc), $ADBE (Adobe Systems Inc) (Adobe Systems Inc)) has been one of the most penalized sectors in 2026, with both names down ~31% YTD as markets repriced AI disruption risk. ADBE in particular now trades at ~14x forward earnings, a near 40% discount to the S&P 500, while maintaining a 36% net margin. I have been selectively increasing exposure as the sector showed signs of recovery toward month-end.
I have been reducing positions in consumer staples names that posted solid gains in recent months, locking in performance from defensive positions and reallocating capital toward higher-conviction opportunities at more attractive entry points.
Overall, my strategy remains unchanged: accumulate high-quality compounders during periods of weakness and maintain disciplined position sizing. Short-term index divergence driven by narrow sector concentration does not change the medium-term thesis, and the current valuation gaps across the portfolio suggest the conditions for catch-up are building.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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Sat Sep 05 2026 14:42:17 GMT+0000 (Coordinated Universal Time)
