Rise Performance Update: Stocks

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From January to the end of June, Rise US Stocks plan was up by 11.16%. This is in contrast to the -2.51% performance recorded by the S&P 500. Our users on this plan have essentially outperformed the S&P 500 by 13.67%.

If we consider Q2 performance alone, our stocks portfolio returned 40% (vs. the S&P500’s 21%), beating the index by 19%!

Interestingly, our investment philosophy does not focus on outperforming an index but on finding and selecting the highest quality public companies judged by their long-term competitive advantage, earning power and the stability of their growth.

Outperformance then is proof that we selected well and the market agreed with us.

Two things influenced our outperformance over this past quarter and the year to date:

1. Unique holdings: As a diversified and active stock portfolio, there are specific holdings that contributed strongly to our performance. These include Tesla (+118%), Shopify (+66%) and JD.com (+65.7%).

2. Portfolio Rotation: By the end of 2019, we had moved away from tech stocks because of their stretched valuations. Instead, we increased our exposure to health care and utility stocks.

Coming into 2020 and facing the unforeseen COVID-19 pandemic, those utilities and health care stocks held their value much better while tech stocks at first dipped with the rest of the market (allowing us to buy) then soared as work-from-home measures drove their stocks higher. By holding our value well, getting in at low prices and riding the market back up, we were able to generate pretty significant alpha.

Despite our remarkable gains, we are still cautious because there is a likelihood of a US recession spanning from Q3 into mid-2021 and we will continue to select stocks that are in a good position to retain their advantage and ride out the storm.

There is a lot of risk in the global market from health and socioeconomic (with devaluation in Nigeria and unrest in the U.S.) factors, but you can always count on Rise to navigate the terrain and continue to grow your long-term investments in dollars.

  • Trade Desk (TTD) +26.43%
  • Illumina (ILMN) +28.61%
  • Fiverr International (FVRR) +36.00%
  • Square (SQ) +44.12%
  • Tesla (TSLA) +69.97%
  • TransDigm (TDG) -0.28%
  • ExxonMobil (XOM) -1.34%
  • Tyson Foods (TSN) -3.03%

Join Rise today and start building a diversified dollar investments portfolio for long term returns, capital preservation and growth. Download RiseVest now from the App/Play store to get started.

Rise Vest Technologies Limited and all of its subsidiaries are sharing this update for educational reasons only. Nothing in this update can be regarded as investment advice. Past performance is no guarantee of future results and all investments carry some risk. Investments are held by regulated partners in the relevant jurisdictions.

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