In a week marked by market turbulence, The Numbers Fund grappled with a mixed bag of performances from its 27-equity portfolio. Despite some setbacks, however, strategic choices in specific securities helped the fund outperform the S&P 500.
Leading the week’s highlights, our long position in Apple soared with an impressive 7.97% gain. This surge can be attributed to the tech giant’s strong market appeal amidst expectations for robust upcoming product launches and continued resilience in its services sector. Netflix, riding on positive subscriber growth and anticipation of its fresh content slate, delivered a solid 4.20% return, further enhancing our tech-heavy strategy.
In contrast, while our long bet on Microsoft faced headwinds with a slight 1.86% dip, ongoing worries over valuation pressures in the tech sector and recent challenges in its cloud business expansion provided some cause for concern. Similarly, our position in Broadcom saw a marginal decline of 0.29%, reflective of broader semiconductor sector volatility affected by global supply chain issues.
The electric vehicle segment proved somewhat stabilizing, with Tesla managing a 1.12% rise, driven by optimistic investor sentiment on its future growth potential. Meanwhile, Mastercard boasted a modest return of 1.20%, suggesting sustained consumer confidence in digital payment systems amidst economic uncertainties.
Yet, not all was rosy. Pharmaceutical leader Eli Lilly experienced a 3.26% drop, potentially influenced by patent cliff concerns and competitive pressure in its pipeline. Retail giant Costco launched into the red, declining by 1.38%, amid speculations over consumer spending patterns as inflationary pressures weigh on discretionary purchases.
While the fund witnessed some bright spots, a string of positions didn’t fare as well. Notably, an ill-timed entry into NVIDIA resulted in a steep 5.99% loss, as the semiconductor darling faced profit-taking after a torrid run. Exxon Mobil, too, was caught off-guard by fluctuating oil prices, leading to a 6.24% slide.
Attempting to widen our exposure, the fund also ventured into various sector and regional ETFs. Yet positions like the S&P 500 Consumer Staples and Emerging Markets iShares MSCI ETF unfortunately underperformed, facing downward trends from global economic headwinds and regional lockdowns, respectively.
In summary, the fund concluded the week with a total portfolio loss of 1.48%, yet this performance was notably stronger than the S&P 500’s 2.25% downturn, cueing a 0.77% outperformance. Key strategic positions underscored the fund’s resilience amidst a challenging market landscape. Looking ahead, maintaining agility and disciplined risk management remains crucial as volatility looks set to continue.