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.