Unicorn Portfolio Monthly Update

A review of our Unicorn Portfolio.

Our Unicorn Portfolio is performing relatively well, with 13 of our 15 stocks positive. Both companies that are down, PubMatic ($PUBM) and Digital Turbine ($APPS), operate in the AdTech industry.  This sector is underperforming as a whole due to recession fears. Usually in a recession advertising budgets are cut first and that is why we are seeing significant pressure on these stock prices.  We don't feel like we have overpaid for these companies since they are trading at very low valuations even if growth slows down. 

Digital Turbine is facing synergy problems with the 3 acquisitions they completed in 2021. This is to be expected, but it seems to have impacted employee morale as is visible on Glassdoor reviews. This is something to look out for and the company's success is highly reliant on the successful integration of all 3 companies involved. Right now we are not seeing any red flags at PubMatic but the AdTech industry is undergoing a transformation and new regulations might create obstacles. 

We sold 50% of our positions in our genetic editing stocks, Beam Therapeutics ($BEAM) and Intellia Therapeutics ($NTLA) in July after a massive runup. The stocks have pulled back a bit but we are being patient before we are adding to our positions again. Beam is also facing a new hurdle with an FDA HOLD on their preclinical CAR-T candidate for blood cancer, BEAM-201. Not much is known at this time and we are waiting for an explanation from the FDA. We are warning our readers that the selling of any shares triggers a tax event and it is each investors responsibility to always remain tax compliant.

A lot of the companies will also be reporting earnings in the upcoming weeks which will give us more clarity on the execution of our holdings in these challenging macro conditions. We will also be adding our last 5 stocks to the Unicorn Portfolio over the next 2 months. We are sitting on roughly 40% cash in this portfolio.

Disclosure

This is not financial advice and is only based on the author's opinion. This is not buy or sell recommendations of any stock.  The $10K is not real money and only a demonstration of a typical portfolio. The Unicorn Portfolio is a high-risk portfolio and should always remain a small allocation of your overall assets. 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.