Long/Short Portfolio Update December 2022

Long/Short Portfolio Update December 2022

January 01, 2023 - 10:07 am

We crushed it in 2022 with the Long/Short portfolio once again!  Last year the Long portfolio beat this one, and this year the tables were turned. We were up 26.9% and our short positions in RH, CVNA and SFIX all were home runs!  We have to mention that the short CVNA position returned 98.3%.  Flat out amazing, and we called the short thesis on this stock well before Barron's published a cover page article citing trouble at the internet based car dealer.

The upcoming year will prove to be somewhat challenging in that the easy money has been made on the short side, and PE multiples have already been contracting. However, there are still sectors that need to be further punished such as home builders and real estate, capital intensive businesses such as auto dealers, and luxury goods.  This should also be a great year for opportunties to put on paired trades since there could be a lot of sideways action in the market.  Commodities have continued to shine, treasuries have returned more than the market, and cash will be king in times of volatility. 

Note that our long/short portfolio holds 60% in cash with a balance of $130,045 ready to be deployed against long positions of roughly $88K.  This is a rare time where we don't have any short positions in this basket, and we're hunting for names to add.  Here is where we stand today, and happy new year!

 

Total Invested $100,000              
Beg Year Balance $171,825              
Current Value $218,008              
YTD Return 26.88%              
                 
Position Weight Entry Date Shares Entry
Price
Current
Price
Position Cost Position Value Gain/Loss %
CASH 59.7%           $130,045.43  
FCX 5% 2/22/2021 259 $38.58 $38.00 $9,992.22 $9,842.00 -1.5%
CRM 12% 1/1/2021 200 $130.90 $132.59 $26,180.00 $26,518.00 1.3%
OKTA 8% 2/22/2021 250 $69.80 $68.33 $17,450.00 $17,082.50 -2.1%
QFIN 9% 2/22/2021 1000 $18.00 $20.36 $18,000.00 $20,360.00 13.1%
NEM 6% 11/8/2021 300 $46.90 $47.20 $14,070.00 $14,160.00 -0.6%
                 
                 
                 
                 
                 
TOTAL 100%         Total Value $218,007.93  
            YTD Return $46,182.99 26.88%
                 
  Short Position         S&P Year to Date Return (18.65%)
            Dow Year to Date Return (7.62%)
            Nasdaq Year to Date Return (33.22%)