Portfolio investment results for February 2020.

Recall that our first goal is to beat the returns of the S&P500 index. The second is to get a portfolio return of 20% or more.

According to the results of February 2020, we received a return on the entire active investment holding period of 20.8%, while passive investments in the S&P500 index for the same amount brought only 3.76%. Portfolio profitability has increased compared to the previous month, and still significantly exceeds the profitability of investing in the S&P500 index.

As for the monthly return for February, we received 1.73% on our portfolio, while similar investments in the S&P500 index brought -7.92%. The main reasons for the S&P500 negative results for January are the development of an epidemic of a new coronavirus and the expectation of serious problems in the global economy as a result, Risk-off and the exit of speculators from stocks. Such a huge difference in returns between our portfolio and S&P500 can be explained by the portfolio risk hedging strategy. We have used put options on SPY and VIXM ETF. 

Over the past period there have been changes in the composition of the portfolio: Within a month, we managed VIXM ETF position with the aim of lowering the betta of the portfolio in order to reduce the level of risk. Based on the predictions of Blue Sphere ML shares of ALXN and MMM were also bought. And we sold MRO and AMG shares as they achieved their specified targets. In addition, we manged SPY ETF put options position in order to hedge the portfolio. The reason for buying options is the aggravating situation with coronavirus and dismal economic expectations. Dividends of $34.63 were received. At the end of the month, $531 of free cash were available in the portfolio. The composition of the portfolio can be seen in the table below.   Table 1. ML Portfolio composition, 29 of February 2020: Table 2. Equivalent S&P500 passive investments, 29 of February 2020: