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flagship tech portfolio

Moby's Flagship Tech Portfolio

portfolio strategy May 25, 2022

Welcome back to the ongoing saga of the Moby Flagship Tech strategy.

As always, our strategy seeks to outperform the market by investing in companies with above-average earnings and revenue growth, but are undervalued. In short, we are looking for Growth at a Reasonable Price (GARP).

For a more in-depth explanation of this strategy and how it works, check out this post.

If you’ve been living under a rock, here are some highlights:

  • Over the last month, the NASDAQ is down over 12%

  • The VIX is back above 30

  • GDP for Q1 has been estimated to be negative by the US Gov

And a real kick in the teeth is that our darling "blue-chips" are getting beaten down.

With seemingly no where to turn, our Flagship Strategy is here to lead us through the storm.

By following the tried and true discipline of buying good companies at reasonable prices, we can maintain our confidence in our portfolio and ride out the storm.

And guess what? This strategy has given our premium members some serious outperformance over the market!

Performance Overview:

We won’t hide our excitement, the Moby Tech GARP Strategy has had stellar performance over the last month!

So why did our Flagship Strategy have positive returns when everyone else was losing money? 

The short answer is that we picked companies that were pretty beaten down but had strong businesses that everyone else was ignoring. Additionally, we have also carefully selected companies with reliable growth. As markets churn, investors get frightened and run to the safety of reliable growth.

On average, the positions in our Flagship Tech Strategy returned almost 3% over the last month, and the strategy had a weighted average of about 2.5%. Meanwhile, the NASDAQ over this same period is down almost 7.5% That gives our Flagship Tech Strategy almost 10% of outperformance over the broader index!

Diving into individual positions, our biggest winner was EPAM, followed by KLAC, CLFD, and POWI. They have acted as our floatation devices.

Our biggest loser was NVDA, followed by CNXC and OLED. Probably the most recognizable name here, Nvidia has had the biggest drag on the strategy. The good news is with these names, we’ve probably endured the worst of it already. NVDA is about 50% down off it’s all-time high from last November, and although the path for NVDA may be slightly less bullish, it’s still a powerhouse of computing and a strong position in the long term.

So what that context, here's what was in the old portfolio and what's now in the new one!

Old Portfolio:

New Portfolio: