Core Fund Monthly Update

A review of our Core Fund Portfolio.

We are in earnings season again and most of Big Tech has already reported. We have Google, Microsoft, Amazon and Tesla in this portfolio. Although none of these were super impressive, the market expected far worse and we saw decent rallies this past two weeks.

These Big Tech stocks are the major market movers and after these earnings rallies, the market direction will again be dictated by macro conditions like inflation, geopolitical tension, interest rates and recession fears. In the coming weeks, we will see the rest of the quarterly earnings results like many of our SaaS companies in the Core Fund. This will give us clarity on their relative performance versus the hyperscalers.

A reminder that this fund focuses on growing leaders in their industries. Our goal is to outperform the S&P500 by identifying the best companies in their respective industries. 

Qualifying metrics to be considered for this fund:

• Established Moat
• Great financials
• Impeccable Management
• Solid Business Model
• Future Potential

Portfolio Update Summary

We added to our position in ServiceNow after their earnings reports. Shares fell after the cloud-based workflow software company cut its full-year subscription revenue forecast in a move that overshadowed an otherwise decent second-quarter report. On average, analysts suggested that although further headwinds are anticipated due to FX pressures and longer sales cycles, the firm's underlying business drivers and pipeline remain strong and growth will return as the macro environment improves.

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Disclosure

This article is not financial advice and is based on the opinion of the author.  This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products. The $20K in the Core Fund is not real money and only a demonstration of a typical portfolio. This is an actively managed portfolio, where we will buy and sell positions as we deem fit without any regard for taxation. Remember, all selling of stocks triggers a tax event in most countries and it is the investors personal responsibility to always remain tax compliant.