Upwind performance report

The market turbulence over last few weeks has been the first real test of the Nikeforos portfolio, and a chance to look at its performance in the toughest weather it has seen since inception in 2016. Just like a sailing boat, a good portfolio should be able to perform upwind and downwind. And these two weeks have been the portfolio’s sea trials.

Downwind performance has been spectacular since inception. Reaching a peak of 200% (briefly) on 14 September 2018 vs. Nasdaq’s 58.5% over the same period.  But when the wind turned in October, the effect has been particularly tough on the tech sector. At time of writing Nasdaq YTD is only 3.7% (having peaked at 17%) since 1 October 2018 (SEK performance).

For 2018 Nikeforos is up 21.5% (130% since start) having peaked at 58% (200% since start). Even given the steep fall since peak earlier in the year, that is multiples better than Nasdaq and continues the trend since inception. That gives me confidence that the business case for this sector and grouping of companies is robust, even if volatile. During this period, the IP owners have held up best, and Take Two interactive was supported by the great figures on the launch of Red Dead Redemption 2. It is also a product of the risk spreading across markets and sectors:

Just to blow my trumpet a little more here is the competition, ETFMG – GAMR, over the same time period. The ETF is down 14% ytd, with positions in Nintendo and generally a narrower investment universe having weighed this fund down this year:

/Richard