VEGA ARC POST APRIL RESULTS - DOWN 4.07%
During Aoril we held 10 positions - a full allocation, and no cash. Here are the results compared to our benchmark of the tech ETF XLK:
December 31, 2018 VEGA ARC $11,000
January 31, 2019 VEGA ARC $14,442 +31.29% XLK +6.94%
February 28, 2019 VEGA ARC $16,484 +14.14% XLK +6.91%
March 30, 2019 VEGA ARC $17,065 +3.53% XLK +4.77%
April 30, 2019 VEGA ARC $$16,370 -4.07% XLK +4.67
Year to Date: VEGA ARC +48.82% XLK +27.07
For April we owned the stocks of ten companies. We were fully allocated. Three positions posted gains. Four 7 positions posted losses. We did not beat our benchmark for the month.
Vega Arc had 60% of the portfolio in biotechs. The healthcare sector (XLV) witnessed a quick slide this month due to concerns from the coming election and the potential for transformation. As part of the healthcare sector our biotech holdings did poorly.
For May we will sell 5 positions. We are keeping 5 holdings and we will add 5 new holdings. We are fully allocated with no cash position. We believe market conditions are intermediate term favorable. Our mix for may is 50% biotech, 30% tech, 10% discretionary and 10% industrials.
For May we reviewed and charted 175 companies. We used various indicators on short-term, middle term and longer term time frames. We seek companies that have a high probability of growth. From that group we selected the 10 holdings for this coming month.
VEGA ARC Year-To-Date for 2019 is up 48.82%.
About VEGA ARC:
January 1st of 2019 we launched and are testing a new investment model. It is called VEGA ARC.
We have researched and developed a pool of about 150 companies that are innovators in genome, industrial, next generation web, and financial tech. From that group we will look for the top 10 growth and trend characteristics from charting each company on various time frames. We will hold 10 securities each month and buy in equal weights. Ongoing, on or about the first of each month we may hold or sell any of our 10 picks. If we sell a holding we will select new alternatives. If no investments meet our rules we will go to cash.
The investment picks may be in small cap, mid-cap or large cap companies. We will invest in foreign companies. We do not use leverage or short companies. We do not use options.
We hope to make Vega Arc details available in a paid newsletter in July of 2019. Please check back for details.
Chris Vig is president of The Vig Company and is an investor, artist, author, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only. We may own, buy, or sell any security listed here at any time. Do your own diligence when investing your hard earned cash. Follow The Vig Company on Facebook.