Really appreciate the transparancy here. That ANF pullback stings but shows why 25+ names matter. Quick question - are you tracking sector concentration with HALO and CI both being healthcare, or just letting the formula run? Also, sticking throuhg 7 months of underperformance takes real discipline. How are you mentally preparing for potentially longer stretches of lagging if it continues into year 2?
Thanks for the comment! I'm not tracking sector concentration, just letting the formula choose, but it's a good point. There are many healthcare names in the formula screener (and hence in my portfolio). Small cap healthcare in particular has underperformed the S&P500 by 26% per year for the last 3 years. Same thing happened in 1999 after which small cap healthcare beat S&P500 in all 3 year-periods until 2021. So if a similar cycle turn comes this time as well (hopefully soon), that could be the start of the outperformance.
Interestingly, in the results that Greenblatt published in his book, 1999 is one of the years of underperformance...
And yes, you're right, mentally not easy, but I'm committed now. 2 years of underperformance would be tough though...
Really appreciate the transparancy here. That ANF pullback stings but shows why 25+ names matter. Quick question - are you tracking sector concentration with HALO and CI both being healthcare, or just letting the formula run? Also, sticking throuhg 7 months of underperformance takes real discipline. How are you mentally preparing for potentially longer stretches of lagging if it continues into year 2?
Thanks for the comment! I'm not tracking sector concentration, just letting the formula choose, but it's a good point. There are many healthcare names in the formula screener (and hence in my portfolio). Small cap healthcare in particular has underperformed the S&P500 by 26% per year for the last 3 years. Same thing happened in 1999 after which small cap healthcare beat S&P500 in all 3 year-periods until 2021. So if a similar cycle turn comes this time as well (hopefully soon), that could be the start of the outperformance.
Interestingly, in the results that Greenblatt published in his book, 1999 is one of the years of underperformance...
And yes, you're right, mentally not easy, but I'm committed now. 2 years of underperformance would be tough though...