A brave new month and brave new cash to burn (or invest). Illustrated below, are the ParaTopia investments as of August. Corresponding to the following units bought today:  ATCO-A.ST = 4, ERIC-B.ST = 1, HEXA-B.ST = 8, HM-B.ST = 2, INVE-B.ST = 1, NDA-SE.ST = 2, SAND.ST = 1, SEB-A.ST = 1, SHB-A.ST = 1, SWED-A.ST = 1, TELIA.ST = 28, and VOLV-B.ST = 3. Now I wonder, given the last events as mentioned in AZN good. HEXA very bad. , do I really want to buy more HEXA? Could be that they are a bit underpriced but 18% of the total portfolio this month is still not nothing.  Another matter is the 14% and 28 units of TELIA that my investment strategy supposedly wants me to buy. TELIA who is about -18% down YTD, -42% LTM, and -40% since inception in 2005. If nothing else, I hope it’s a good diversifier.  

Here follows my July investments, kindly appointed by my favourite ParaTopia investment strategy. Unit-wise, entering the market today includes: ATCO-A.ST = 3, AZN.ST = 1, ERIC-B.ST = 2, HEXA-B.ST = 4, HM-B.ST = 3, INVE-B.ST = 2, NDA-SE.ST = 2, SEB-A.ST = 2, SHB-A.ST = 2, SWED-A.ST = 1, and VOLV-B.ST = 2.  I have always felt personally attracted to the Pharma industry and not less so to Astra Zeneca. Can’t wait to see how this exiting allocation turns out!

ATCO-A.ST = 5, ATCO-B.ST = 3, ERIC-B.ST = 1, HEXA-B.ST = 1, HM-B.ST = 2, INVE-B.ST = 3, NDA-SE.ST = 3, SBB-B.ST = 90 (!?), SEB-A.ST = 1, SHB-A.ST = 2, SWED-A.ST = 2, and VOLV-B.ST = 2. That’s what I’m buying today following my ParaTopia investment strategy.  As illustrated above, nearly 30% of the total portfolio this month is allocated toward either ATCO-A or ATCO-B. Only time will tell whether that’s a good or bad call. 

So, apparently, for this month my ParaTopia strategy has decided that it’s time to evolve. From being rather financials-heavy and into the gambling industry. As illustrated below, this little sin-city stock is about to make up almost 25% of the total portfolio. Entering the market on Monday, the corresponding units of each stock amount to as follows: ATCO-A.ST = 4, ELUX-B.ST = 3, ESSITY-B.ST = 1, EVO.ST = 1, HEXA-B.ST = 1, HM-B.ST = 1, INVE-B.ST = 1, NDA-SE.ST = 4, SAND.ST = 1, SEB-A.ST = 3, SHB-A.ST = 4, SINCH.ST = 4, SWED-A.ST = 2, VOLV-B.ST = 2. I plan to get back to you with a performance overview soon, don’t worry. But until then take care.  

 This month’s allocation, following my ParaTopia investments strategy is set out as below. My order is expected to enter that market pronto today, corresponding to the following unites per stock: ATCO-A.ST = 3, BOL.ST = 1, ERIC-B.ST = 2, ESSITY-B.ST = 1, HEXA-B.ST = 2, HM-B.ST = 4, INVE-B.ST = 1, NDA-SE.ST = 2, SAND.ST = 1, SEB-A.ST = 3, SHB-A.ST = 4, SWED-A.ST = 4, VOLV-B.ST = 2. My investments are still quite tilted toward financial stocks, which is questionable given the last weeks results (see  Three weeks and 544 SEK short ) . Anyhow, my strategy have also introduced some newcomers, like HEXA and HM. The thetas of the month amounted to 3.04 for  dolvol  and 0.96 for  momentum . 

This month, March 2023, will be the first month when I invest according to my strategy using real money. Yes! I am finally confident enough in my ParaTopia strategy and I’m ready to bet some money on it.  The allocation in %, expected to enter the REAL market tomorrow is displayed below.  Specifically, this corresponds to the following unit-wise allocation for a budget á 5000 SEK: ASSA-B.ST = 1, ATCO-A.ST = 4, BOL.ST = 1, ERIC-B.ST = 2, ESSITY-B.ST = 1, INVE-B.ST = 1, NDA-SE.ST = 4, SAND.ST = 1, SEB-A.ST = 2, SHB-A.ST = 5, SKF-B.ST = 1, SWED-A.ST = 2, VOLV-B.ST = 3.  There are a lot of financial stocks this time which indeed will be interesting to follow. Also note that I have obtained this allocation using the brand-new investment strategy presented in Devils and details  (i.e., the non-restricted optimization model with standardized weights). The thetas of the month amount to 2.99 for dolvol and 0.96 for momentum .

This month, I continue buying stakes in ALIV together with primarily ALIV and KINV. My investments are expected to enter the market on Monday, 6th Feb 2023, and the allocation is presented as below.  Again, I use my dynamic investment strategy (see A few simple rows – Restated ). This month, however, the thetas derived by my strategy (-54.6 for dolvol and -2.14 for momentum ) seems truly extreme.  The -54.6 dolvol theta tells me to put as little weight on liquid stock as possible. Meanwhile, the -2.14 momentum theta tells we to invest in past losers rather than past winners. The latter seems a bit controversial strategy wise, don’t you think? 

Time for the first investment this year. For January 2023, I continue to use my dynamic investment strategy (see A few simple rows – Restated FMI) which has derived two rather aggressive thetas of -12.75 and 0.99 for Dolvol and Mom , respectively. Above, you see the approximate allocation of stocks to be invested in as of Monday, 9 Jan 2023. I will be glad to welcome ALIV-SDB.ST as a new member of the ParaTopia portfolio. 

Below, I show you the number of shares of each stock that my strategy has decided me to invest in as of December 2022. This is the first investment using the Dolvol + Mom (Dynamic) strategy as presented in A few simple rows – Restated   and it is exciting to finally put it into practice.  The dynamic values of theta amounted to -0.94 and 1.05 for dolvol and momentum , respectively. Apparently, TELIA.ST is very popular this month. 

This month’s buy continues to come with a lot of SINCH.ST but surprisingly less of ABB.ST. Below, you will see the allocation of stocks which are planned to enter the market on Monday, 7 Nov 2022.  I am still waiting for the day when I can welcome AZN.ST and EVO.ST to my portfolio, but it seems like my model would like me to keep waiting a bit longer.   Recently, I have been wondering if it’s a weakness to only include the asset factor dolvol  for determining my portfolio weights. Might it be that the past trading volume is a bit too homogeneous over the different stocks? Hence, resulting in my strategy always choosing “kind of” the same assets?  I plan to explore this potential issue more soon. Or, at least, I’m working with an alteration to my investment strategy that could potentially behave a bit more dynamically over month-by-month.     

About time for some new investments, and yes, I know, I am late, and I my sorry for keeping you on hold last weekend (it must have been truly devastating for all my currently ca. 14 weekly readers).  With that said, here comes an overview of my October buy, expected to enter the market on Monday, 10 Oct 2022.     The asset allocation above is, like the last month, Buy-Side _ September 2022 , derived using the expanding window approach as described in The Static, the Expanding, and the Moving  and with the single asset characteristic dolvol . My theta for October (θ = -0.30) is also like the one as of September, plus/minus a few decimals that is.    

New month = new investments! This month, I continue using the expanding window approach as presented in The Static, the Expanding, and the Moving . Additionally, as discussed in Update #0826 , I will also start using only dolvol as a single asset factor.  Following this practice, I have managed to obtain a new theta that is slightly different compared to those of Buy-Side _ August 20 . This theta is essentially telling me to put less weight on stocks with a higher past trading volume and, per construction, ignore any information provided by the market beta .  Moreover, this is what the estimated optimal asset allocation (expressed as the number of shares to buy) looks like for September 2022.  My buy-side plan above is expected to enter the market tomorrow, 5 Sep 2022. 

A new month calls for a new "platonic" investment opportunity! Following my investment strategy, especially using the expanding window as described in  The Static, the Expanding, and the Moving , I have re-estimated a new pair of thetas. These are indeed very similar (but not exactly identical if you look at the decimals) to those that I previously estimated in  A few simple rows . Nevertheless, using these new thetas, I obtain the following asset allocation for August 2022. My buy-side order is expected to go through this on Monday the 8 th of August and the opening price is yet to be determined (I think). Hence, I report the number of stocks rather than the total holdings in SEK. What surprises me the most is the relatively large position toward SINCH.ST, especially after delivering a quite disappointing performance as displayed in  Update #0729 .

I develop my own kind of investment strategy with a special focus on data accessibility and feasibility. My goal is to show how any individual can take control over her own finance using an open strategy that is still competitive with the market and/or with other investment alternatives. With the help of just a few simple rows of code and publicly available data, this strategy begins with a version of the  parametric portfolio policy . In essence, it uses the two asset factors: past trading volume , and market beta  for finding the optimal asset allocation. As of 3 July 2022, following this strategy, I made my first “purely platonic” investment of which the allocations and outcomes are displayed below.  The investible universe is restricted to the OMX Stockholm 30 Index (^OMX) constituents. Having only approximate 30 different stocks to choose among may seem slightly limited. But for me, it makes a good and fairly feasible base to start with. Next, I will show you a more...