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SLT Core Portfolio: Update
We wanted to share an update of our portfolio. We started our journey last year by creating a proprietary stock-screener based on our Quality-Growth investment philosophy (more details here) and we then shared with you company analysis deep-dives. Based on our research, we started building positions carefully in 2023 and as of today, half of the portfolio is invested in stocks and the other half is sitting on cash, in order to build the portfolio opportunistically.

Here are the details, ignoring cash and considering only the stocks book:
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Please note that we only recently added Evolution AB ($EVOS), Hermes ($RMS), and Ulta Beauty ($ULTA) to the portfolio. For more details about companies we hold, please visit the equity research section of our website.
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Overall, the portfolio performed well since inception (first trading day of 2023), mainly helped by a large exposure to the information technology sector. Main contributors to the portfolio's outperformance are $META, $MSFT, and $GOOGL. The portfolio exhibits more volatility than the SP500 due to its growthy profile however, the quality factor, key to our strategy, mitigated the higher volatility and allowed the portfolio to show lower drawdown with especially longest drawdowns days c.2.5x less important than the SP500 (36 vs. 89 days). You can visualize the SLT Core Portfolio's tearsheet online containing all statistics and charts with regard to performance analysis.

Additionally, we wanted to let you know that we will be sharing in a future post the position sizing method that we developed to determine the weightings of each company in the portfolio. We hope it can be helpful for others as well.

Stay tuned for more updates and feel free to share your own portfolio strategies and insights in the comments section below. Let's continue to learn and grow together!

Disclaimer: This post is for informational purposes only and should not be taken as investment advice. Please do your own research before making any investment decisions.
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Porchester 🔺's avatar
Porchester 🔺
@porchesterMay 7
Are you not worried about how close the portfolio is weighted towards tech and how closely it trends the S&P?
SLT Research's avatar
SLT Research
@slt_researchMay 8Author
@porchester thanks for these questions.

Given our investment strategy, I am not surprised and particularly worried about the tech sector's weight in the portfolio. According to the broker (screenshot above) companies like $TXN, $ANET, $CPRT, and $V all fall into the Technology bucket, but we believe their financial performance is not driven by the single exact same factor.

The correlation to the S&P500 is 72.25% YTD. Some may consider it high but since we adopt a long-term investment approach, it is intended to have an important exposure to the equity market. Also, the above analysis is only for the equity portion of the portfolio. As of today, c.50% of the portfolio is invested in cash, precisely in the expectation of interesting opportunities, with diversification benefit.
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