Portfolio Update
Dear copiers and followers,
The last couple of weeks have been a bit of a rollercoaster, to say the least. The portfolio dropped significantly (roughly -10%), which made me reevaluate some of the positions. After careful consideration, I decided to close the position in Arista Networks ($ANET), realizing a small profit of approximately 10%.
Not too long ago, I opened this position with the intention of gradually building it up, and I did. Over the past months, however, the stock showed only limited upside movement and remained largely range-bound. While I continue to believe in the long-term potential of the company, the position did not deliver the momentum I was looking for. As this is a momentum-driven portfolio, sitting on the sidelines with idle capital is not something I typically do.
The current market conditions created attractive entry points in other core holdings. Therefore, the proceeds were immediately redeployed into two existing positions: 50% into Nvidia ($NVDA) and 50% into Microsoft ($MSFT).
Why this reallocation?
In the recent market rotation, where capital has been moving out of certain technology segments into other sectors, Arista actually held up relatively well. However, this same rotation has made the valuations of several other high-quality moat leaders more attractive. I expect that a significant portion of investor capital will continue to flow toward these companies in the period ahead. Both Nvidia and Microsoft currently offer, in my view, a compelling combination of structural strength and more attractive upside potential compared to the position I exited.
Additionally, this reallocation slightly lowers the overall forward PE and PEG of the portfolio, which contributes to a somewhat more balanced risk score.
This move aligns with the long-term approach of the portfolio: focusing on businesses with durable competitive advantages while actively reallocating capital when better opportunities arise within the AI and digital infrastructure value chain.
Transparency to my copiers
The freed-up capital has been immediately reinvested. If you are copying me, these adjustments will be executed automatically and pro-rata across your portfolio. No action is required on your end.
We continue to manage the portfolio with a focus on structural trends and disciplined capital allocation.
All the best, Stephan... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
Inderdaad best wilde weken. Voor mij minder extreem maar alsnog duidelijk merkbaar. De ene week -4% de andere week +4.2% deze week weer negatief om uiteindelijk terug bij het startpunt van een aantal weken geleden te komen. Je ziet dat bij het kleinste stukje nieuws de reactie iedere keer enorm is in... Show More Translate
Vrij positieve resultaten van ASML vandaag, en dan alsnog de dag eindigen in rood😐... Show More Translate
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