Update on Portfolio Strategies and Performance
Summary:
Our BPIQ model portfolios, which are all real-money brokerage accounts, have performed excellent since we started to focus more on hedge-fund favorite strategies. ☝️ Want to get access to the holdings and trades of at least 2 of our portfolios? Become an Elite subscriber today.
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About 1 year ago, we announced in an Oct 5, 2023 portfolio strategies forum post and portfolio strategy post, that we made changes to our portfolio strategies based on anecdotal evidence and back testing of holdings for the top biopharma-focused hedge funds. Furthermore, we announced that on April 1, 2023 we launched our BPIQ Hedge Fund Favorites portfolio. And we provided an update on performance of our portfolios on March 20, 2024. We continued to carry forward to the current date, on our updated portfolio strategies (See FN^1 in paid version of article), and the results have been impressive thus far.
The performance of our 5 portfolios since we started using strategies focused on holdings of top biopharma-focused hedged funds are shown in FIGs. 1-3. Despite the fact that the most popular biotech ETFs, XBI and IBB, have performed well over the past 1.5 years, each of our portfolios has over-performed these biotech ETFs substantially over this time period (FIGs. 1-3).
Our longest-standing fund using a top hedge-fund focused strategy is our Hedge Fund Favs (Top 20s) portfolio, which has outperformed XBI and IBB since March 31, 2023, Sept 30, 2023 and Dec 31, 2023 (FIGs. 1-3) by between ~5% and ~25% return percentage, and 50% and 90% relative return increase, depending on the time period.
Our best-performing portfolio, is our Spread-the-Risk portfolio, which beat XBI and IBB by at least 20% return percentage, or ~100% relative return increase since its inception of a hedge-fund favorite strategy. Thus, our Spread-the-Risk strategy has yielded impressive 33.11% (ytd) and 69.5% (1 yr) returns. As we reported in March 2024, our Spread-the-Risk portfolio's performance has beat that of XBI for every time period to present, starting from Dec 31, dating back to Dec 31, 2018. It should be noted that although the portfolio is now much more based on our proprietary weighting of hedge fund holdings, the overall strategy remains to spread-the-risk over a relative large number of biopharma stocks (35-45 tickers).
Performance of BPIQ/Amp portfolios since adopting a hedge-fund favorite strategy (FN^1).
FIG. 1. BPIQ PORTFOLIOS vs. XBI/IBB - 1 Year Returns**
** Returns as of 9/23/24 (Based on actual brokerage accounts; returns not verified by an outside accounting.
FIG. 2. BPIQ PORTFOLIOS vs. XBI/IBB - Year to date**
** Returns as of 9/23/24 (Based on actual brokerage accounts; returns not verified by an outside accounting.
FIG. 3. BPIQ PORTFOLIOS* vs. XBI/IBB - Since 3/31/23**
** Returns as of 9/23/24 (Based on actual brokerage accounts; returns not verified by an outside accounting.
We realize that caution is warranted because of the relative short time period of our hedge-fund favorite-based strategies. It is noteworthy, as we reported in our prior hedge-fund back-testing post, that our strategies are variations on a number of different strategies that consistently beat XBI in our in-silico back-testing.
☝️ Want to get access to the holdings and trades of at least 2 of our portfolios? Become an Elite subscriber today. Then you can follow along with our portfolio moves. Plus, our version of this forum post for Elite subscribers, provides detailed considerations for 5 portfolios that we have been tracking.
This article is not legal, tax, or investing advice. Please do your own diligence and consult a qualified investment professional before making any stock or options trades.
Article history
9/24/24 EV
FN^1. Since we withdrew some money from some of the portfolios in 2023 and/or 2024, we used the formula from pudentinvestors.com for calculating percent return, taking money withdrawn into consideration: ((ending value+amount withdrawn)/starting value) -1