Monthly update for May
Dear Copiers and followers
After months of pain, May finally felt like a turning point. We closed the month up +3.67%, a real relief after being down more than 6% on the month and sitting at -31% year-to-date at our worst point. We're not out of the woods yet, but the tide is clearly starting to turn.
The Macro Picture: The Hidden Divergence
The last few months have honestly been frustrating to live through. The market indexes kept hitting all-time highs, but that story is a bit misleading. Most of those gains came from a small group of AI-related stocks that sucked up most of the money flowing into the market. Meanwhile, a lot of really solid companies with strong businesses and growing profits got left behind, and kept dropping for no good fundamental reason.
That's the kind of disconnect that doesn't last forever. And it's exactly where our portfolio sits.
Instead of pulling back during the drawdown, I actually leaned in. I used the weakness to build up 5 core positions in companies I believe are some of the most undervalued right now given how well their businesses are actually doing. The plan is simple: when the market eventually catches up to the fundamentals, these stocks should move hard.
The big winners in May: $NOW (ServiceNow Inc) and $SOFI (SoFi Technologies Inc)
Our two best performers this month were ServiceNow ($NOW) and SoFi Technologies ($SOFI), and both tell the same story.
ServiceNow is one of the best enterprise software businesses out there. Revenue keeps growing at double digits, margins keep improving, and they're right in the middle of the AI wave through their Now Assist platform, but on the profitable side of it, not the hype side. The stock spent months getting beaten down for no good reason. The business never skipped a beat.
SoFi has been doing the hard, unglamorous work of building a real digital bank, growing its customer base, diversifying revenue across loans, financial services, and tech infrastructure, and getting to profitability. For a while the market treated it like a risky bet. But the numbers tell a different story, and it seems like the market is starting to notice.
Where we go from here
I won't sugarcoat it: sitting through these past months wasn't fun. But the positions are in place, the companies are performing, and May feels like the start of a real shift.
I'll keep you posted as things develop.
Thank you for sticking with me through the rough patch. It means a lot!... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
Hey, your risk level increased to 7. When are you going to decrease, I can't add funds.... Show More
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