Good Morning. I wanted to provide a quick update on the JSPM Omaha Growth Strategy which saw its inception on July 27, 2020. In just over two months the portfolio returned nearly 10%. In the same time period, The Dow Jones Industrial average returned approximately 8%, the tech heavy NASDAQ approximately 10%, and the benchmark SPX approximately 4%. In August the portfolio got off to a great start as the fund is overweight technology. In early September we found ourselves playing defense as many of the market leaders pulled back from a short burst of euphoria which they saw in late August. We weren’t surprised, we were prepared and I talked about this here: “Short Term Caution Warranted”
All in all, I was happy with the performance and feel that we navigated the choppy waters well. The portfolio kept up with the best performing index and never experienced as steep of a drawdown as the NDX. As with the majority of our portfolios, the JSPM Omaha Growth Strategy is actively managed. The goal is always to outperform but this can also mean not experiencing as steep of a drawdown (loss) as the major indexes. Our clients pay us to be in great stocks that outperform. Our clients also pay us to ensure that when the overall market gets dicey, we play defense. I feel we did a great job of both as we experienced a tale of two different markets in August and September.
In the coming weeks, we continue to expect choppy waters. We have an election, as well as earnings season, looming and anything can happen. As we continue to evaluate risk and make adjustments as we see fit, we feel confident that being overweight the best companies with high sales and earnings growth will allow us to outperform in the short and longer-term. In the coming days, I am going to do write-ups here going over some of the core positions held in the portfolio and why I feel they are poised to continue to do well no matter the market environment.
I wish you all a happy and safe October and I’ll be back with more soon.
Trent J Smalley, CMT