VEGA ARC Year End Results. Up 67.74% for 2019!

During December 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

May 31, 2019 VEGA ARC $15,841 -3.23% XLK -8.66%

June 30, 2019 VEGA ARC $17,311 +9.28% XLK +8.94%

July 31, 2019 VEGA ARC $17,866 +3.21% XLK +3.50

August 31, 2019 VEGA ARC $16,486 -7.72% XLK -1.54%

September 30, 2019 VEGA ARC $14,899 -9.63% XLK +1.58

October 31, 2019 VEGA ARC $14,899 +3.04% XLK +3.9%

November 30, 2019 VEGA ARC $16,760 +9.18% XLK +5.37%

December 31, 2019 VEGA ARC $$18,541 +10.09% XLK +4.32%

Year to Date: VEGA ARC +67.7% XLK +49.86%

This past month we owned the stocks of 10 companies. We were fully allocated. 9 positions posted gains. 1 posted losses. We were up 10.09% and we beat our benchmark.

For January 2020 we have kept 4 holdings and liquidated the remainder. We have currently put the model on hold and are focusing our efforts on a new model VEGA VALEOR. I will give results of this model monthly.

VEGA ARC for 2019 is up 67.7%.

At year end we reviewed every aspect of the Vega Arc model. We are pleased with the performance but we do not like the volatility the model experienced and the potential for significant downturns. We expected better performance in weak overall market months. This did not occur. We did not significantly beat our benchmark of XLK other than the first month of the year. From February through December Vega Arc was up 27.75%. XLK was up 40.12%. The model benefited greatly in January. Other than that, XLK performed better than Vega Arc during this time period.

The model also saw significant draw downs in August and September with extreme volatility. We had hoped the model would avoid this type of behavior.

We have no doubt over a long time period that our model and methods are successful. But an investor may do as well or better using a broader sector ETF like XLK, and going to cash when conditions warrant.

The holdings for 2019 included: SHOP, PDD, VCYT, XLNX, SPLK, CRSP, SSYS, RKUNY, PYPL, GBTC, NVTA, NSTG, MELI, MRRB, KTOS, KPTI, IOVA, IONS, FATE, DNLI, CRSP, CGEN, BLUE, AQB, AMRN, ALGN.

We are now invested in our new model. VEGA VALEOR.

The Vega Valeor model will broaden our concept to use short positions when the market rolls over, and we are considering using leverage when market conditions warrant. While that will increase volatility we may gain more protection in down months and enhance our gains in up months. We have backtested several years. The model seems viable. We will track and post our results monthly against the benchmark of SPY.

About VEGA ARC:

January 1st of 2019 we launched and are tested a new investment model. It is called VEGA ARC.

We have researched and developed a pool of about 150 companies that are innovators in the 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. Vega Arc contains volatile and higher risk companies, it represents only a small portion of our overall portfolio.

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. We do not 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.

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