📊 PORTFOLIO UPDATE ; CHANGES INCOMING
Been quiet on here for a few weeks but that doesn't mean nothing's happening. I've spent the last month doing a full audit of the portfolio, every position scored, rated, and stress tested against the current environment. The result is a significant rebalance that I'll be executing over the coming days!
The short version: I'm cutting positions that have drifted below my quality threshold, rotating out of names that have had their run, and bringing in a set of new positions I've been building conviction on. The new portfolio will be 30 positions, weighted using an Equal Risk Contribution framework, each position is sized so that it contributes the same amount to total portfolio risk. In practice that means low-volatility names carry larger weights and high-volatility names are deliberately kept smaller, regardless of conviction level. The goal is a portfolio where no single position can blow up the overall risk profile.
Seven positions are coming out entirely. A handful of others are being trimmed after strong runs, one is up nearly 100% and another close to 90%, so taking some off the table makes sense. The capital is being redeployed into names across sectors that are currently underrepresented, including a couple of new sleeves that didn't exist in the portfolio before.
The macro view driving the new additions is the same one I've held since the start of the year. I'm positioning for ongoing conflict in the Gulf and potential further escalation. The Strait of Hormuz situation is not resolving quickly and markets are still not fully pricing the duration. Some of the new positions are a direct expression of that thesis. Others are purely about strong fundamentals and low correlation to everything else in the book.
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Not investment advice. The author may have financial interests in the mentioned instruments.
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