TLT and XLK Position Update - 2024-08-07

The portfolios are further reducing risk exposure by divesting from both TLT and XLK. Refer to the accompanying table for updated position weights. This shift will result in a portfolio primarily composed of short-term treasuries, underscoring our defensive stance.

Our performance continues to significantly outpace major indices during this recent market turbulence. For the week, we've posted a gain of 0.27%, in stark contrast to the Nasdaq's 2.25% decline and the S&P 500's 2.75% drop. This outperformance extends beyond just the week; our cumulative returns since March 2024 stand at an impressive 2.36%, surpassing both the S&P 500 (2.03%) and the Nasdaq 100 (-0.34%).

It's worth noting that during periods of significant market shifts, our strategies may engage in more frequent position adjustments. This agility allows us to respond swiftly to changing market conditions. Our current "risk off" posture has proven exceptionally effective, as evidenced by our superior risk-adjusted performance. With a Sharpe ratio of 0.74, we're delivering better risk-adjusted returns compared to both the S&P 500 (0.43) and Nasdaq 100 (0.05).

Moreover, our approach has resulted in substantially lower volatility (7.61%) compared to the S&P 500 (12.53%) and Nasdaq 100 (18.21%), offering a smoother investment experience. This combination of strong returns and lower volatility underscores the efficacy of our risk management strategy in navigating the current market environment.