The top names were up 33.52%, on average, versus 17.1% for SPY. Portfolio Armor's top names in week 9 generated alpha unhedged, as the chart below shows. So this portfolio returned 13.17%, outperforming its expected return of 6.81%, but falling a bit short of S&P 500 ETF's ( SPY) return of 14.06%. Here's how the 11% threshold portfolio performed, net of hedging and trading costs. I've recently moved away from this ratio approach, and have been presenting portfolios hedged against declines of 9% or greater, as these include more of Portfolio Armor's top ranked names which tend to generate more alpha. The portfolio above, in contrast, had a ratio of 2.04 (as you can see by dividing its Net Potential Return of 21.28% by its Max Drawdown of 10.43%). ![]() The first two portfolios I presented to subscribers on July 27th had ratios of 3.08 and 3.13 to 1, respectively. ![]() When I started Bulletproof Investing, my idea was to present portfolios that had the highest ratio of potential upside (Net Potential Return) to downside (Max Drawdown). That's true of all of the portfolios I present, though. Why I Didn't Present This PortfolioĪ commenter on one of my previous " If You Took On More Risk" articles quoted this question and quipped, "Because you didn't know it would do well". The worst-case scenario here was a decline of 10.43% (the "Max Drawdown"), the best-case scenario was a gain of 21.28% (the "Net Potential Return"), and my site's ballpark estimate of an Expected Return was 6.81%. In a fine-tuning step, Shopify ( SHOP) was added to absorb some of the cash leftover after rounding down dollar amounts to round lots of each of the primary securities. It included Align Technology ( ALGN), HDFC Bank ( HDB), IAC/Interactive ( IAC), Netflix ( NFLX), Nvidia ( NVDA), Regeneron ( REGN), and Ring Central ( RNG) as primary securities. It was this one, where I had asked Portfolio Armor to present us with a $1,000,000 portfolio designed to maximize expected return over the next 6 months while limiting downside risk to a drawdown of no more than 11% over the same period. So I went back to July 27th and looked for the portfolio I created then that had taken on the most risk. Stepping On The Gas PedalĮach week, I use my system to create several portfolios, before selecting ones to share with my subscribers. Here, I show how another portfolio created on the same day as the others - one that risked an 11% decline - performed. The one that came closest to SPY's return was hedged against a greater-than-9% decline. Two of the three portfolios in week 9 beat Portfolio Armor's expected returns for them, but none of the three in that weekly cohort beat the SPDR S&P 500 ETF ( SPY). This is my " investing with a helmet on" approach, and these portfolios are designed to last six months. Recently, I posted the returns from the three portfolios I shared with subscribers in the ninth week of my Bulletproof Investing service last July ( Performance: Week 9). Safety First: race car driver Leilani Munter and her helmet (Credit: Autokult) Investing With A Helmet On, But Driving Faster
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