The Vig Company posts February results. Down .77%. Year to Date Up 2.61%!
What a wild month! During February we were long the market 65% of the month. Short the market 35% of the month and held zero cash. Here are the results compared to our benchmark of the SP500 index - SPY.
December 31, 2019 VEGA ARC $10,000
January 31, 2020 VEGA ARC $10,341 +3.41% SPY -.16%
February 29, 2020 VEGA ARC $10,261 -.77% SPY -8.41%
Year to Date: VEGA ARC +2.61% SPY -8.56%
February was a volatile month. The strong sell-off in the last week was the deepest since 1928. Economic uncertainty from the Corona Virus began to impact the market in a significant way. We were short the market 7 days out of the 20 trading days in February. The SP500 dropped 13% from its peak on February 19th.
We beat our benchmark of SPY by 7.64%.
Year to date we are beating our benchmark of SPY by 11.17%
The model performed exactly as expected.
To start February we are allocated to a risk-off position. We expect the market to be volatile and concerning. As conditions change in a meaningful way, the model will reflect it. We will change our allocations at that time.
About the V2 Model.
January 1st of 2020 we launched and are testing a new investment model. It is called VEGA VALEOR (V2)
We have researched and developed a pool of common and popular ETFs. We will select which ETF’s to invest in based on market conditions and our short term, medium-term and longer-term charts. We will also model asset class ratio behavior for our decision-making process. Leverage will be used when appropriate and we will short the market in a downturn. If no investments meet our rules we will go to cash. We will change holdings at any time during the month.
The investment picks may be in large-cap growth, treasuries, leverage, derivatives. We may short the market or go to cash. Holdings may include SPXU, SDS, SH, SPY, SSO, UPRO, TLT, BTAL, TQQQ, SQQQ, or cash at any time.
VALEOR should be considered a volatile and risky investment opportunity. There is no guarantee of performance.
We may make the V2 model available in newslettter form for a small fee at some point this year. Please let us know if you are interested.
Why the name VEGA VALEOR?
VEGA is a bright star. (Vega is also my nickname.)
The definition of VALEOR is “to be strong, to be well”. We work on a relentless, ongoing basis and endeavor to “be strong” and grow in upward markets. We also strive “to be well” and protect capital in down markets.
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.