This week’s update tells us that we are finally back on green figures!    The total ParaTopia portfolio has jumped from -3.5% to 2.7% between the 14th and 28th of October, showing positive returns for the first time since Update #0819 . My benchmark, OMX Stockholm 30 , is also doing great. Totally well-deserved too. 

SINCH.ST rose about 34% this Friday, contributing to the nice little peak in cumulative returns for my strategy (ParaTopia) as illustrated below. It turns out that my mentioned worries about the stock (see Buy-Side _ August 2022 ) might have been pretty harmless. Overall, this week's update shows some positive trends which are always encouraging.  Sure enough, I’m still losing money. Not to mention that I’m still losing more money than the market that I eventually aim to beat. But still, I remain hopeful.  

This update as of 14 Oct 2020 starts with an overview of my current asset weight allocation, post my latest investments as presented in The late October-buy . This is followed by the second graph, showing my asset returns so far.    My strategy is still dominated by the big industrial stocks SKA-B.ST and ABB.ST and the -6.3% return of SKA-B.ST can to some extent explain the lesser total portfolio return. Meanwhile, two clear winners of this period are SWMA.ST and SHB-A.ST, two financial services stocks that comprise only a smaller faction of my total allocations. FOMO anyone? 

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.    

This week’s update offers a 59-day cumulative return overview of ParaTopia (my own investments) compared to the OMX 30 benchmark .  Results remain similar to those in previous updates. Although, I’m currently working on yet another method-tilt that could potentially brighten things up (a bit).  

Yet another weekly update, this time as of Sep 16, continues to show some quite disastrous results. Although, what is new this time is that my investment strategy now also seems to drag the OMX 30 Index down with her in the gutter too. Funny hah?

Here comes another short update on my investments as of 5 Sep 2022. Looking at the picture below, it’s obvious that I’m still losing money. Although, things don’t look too bright for OMX Stockholm 30 Index (my current benchmark rival) either.

The efficient market hypothesis  states that stock prices already reflect all information available on the market, making it sort of impossible for any investor to generate alpha. Some strong believers of this hypothesis, including my favourite finance professor, would even go so far as to state that any abnormal investment gains are only due to pure luck.  Following the somewhat discouraging results since Update #0826 , I plan to dedicate this today's post to comparing my own investment strategy with a set of completely random ones. Compared to those, it might be that I currently just happen to be out of luck.   I want the random strategies to work under similar conditions as my own. That is, the investible stock universe should still be restricted to the OMX Stockholm 30 Index, no short-selling should be allowed, and I require a monthly reallocation scheme.  Keeping this in mind, I start with generating randomized stock weights for, in total, 100 random portf...

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. 

Here comes another week’s update for my investments as of 26 Aug 2022.  Yes, I know. I have officially started losing money ( -2.28% ).  What can I do about it? Well, I am thinking that I might do some small rearrangements in my strategy soon. Preferably before next month’s investment. For instance, I may decide to only use dolvol as a single asset factor in contrast to both dolvol and beta as I do today. This kind of rearrangement seems more sensible after reviewing the results in Why Dolvol and Beta? .