As we near the end of the second quarter of 2023, we'd like to provide a brief recap of the performance and allocation of our SLT Core Portfolio.

Our portfolio consists of 14 positions, including three new additions in the quarter (Hermes, Evolution AB, and Ulta Beauty). Information technology, consumer discretionary, and healthcare are the three main sectors, with $MSFT, $VRTX, and $V being the top three positions, accounting for approximately 35% of the portfolio.

During this period, the portfolio returned 5.51%, with information technology, healthcare, and communication services contributing positively from a sector standpoint. However, consumer discretionary had a negative impact on performance.

Notably, companies like $MSFT and $NVDA were among the top contributors, benefiting from the AI trend triggered by the ChatGPT phenomenon.

Logically $NVDA received significantly more mentions on the platform in the past three months.

Another significant contributor was $VRTX, a core holding with an average weight of 11.36% during the period. The stock increased by close to 20% this year. We encourage you to read our deep-dive to understand our investment thesis on the company.

On the other hand, our investment in the beauty store chain $ULTA detracted from performance, with the stock declining more than 15% during the period. This decline was mainly driven by the company's tempered annual operating margin outlook and concerns about slowing comparable sales. Analysts also noted that the (lower margin) mass category’s outperformance of prestige could be a sign of price sensitivity among consumers.

However, we remain confident in $ULTA's long-term potential to generate superior returns.

In summary, our portfolio has delivered a year-to-date total return of over 28%, outperforming the S&P500's 15.77%.

We value your feedback, so please feel free to share your thoughts with us in the comments.