Tracking My Investing in Public
Nothing herein is financial advice. Past performance is in no way indicative of future returns. Any listed holdings are not guaranteed to be up to date or accurate. All holdings are delayed. Please do not think mirroring any of my holdings will give you any sort of positive returns or generate alpha. Please use common sense as mileage may vary (considerably).
For the full portfolio and commentary you can follow me on Twitter where I’ll announce updates to lukeposey.com/investing. The tables with holdings will update automatically. I’ll do my best to give consistent updates and semi-intelligent rationale for my decisions.
About my portfolio
I’m interested in investing across various asset classes. I’m diversified across equities, fixed income, commodities, and cryptocurrency. I run mostly active strategies in the above.
I also track early stage technology companies in my free-time. I am not invested in any private companies; all research is purely for my own entertainment and growth as an investor. It’s incredibly fun to watch top-notch founders fight against all odds to build something new, especially the underdogs and unproven entrepreneurs. Here’s to the dreamers, the bootstrappers, and the nonconformists.
In public equities I allocate based on continued personal growth in portfolio theory, quant finance, and algorithmic trading. In cryptocurrency I invest based on technical activities in open source and friends + connections in the space. My picks in early stage tech companies are from products I’ve early adopted, companies I’ve worked with, and entrepreneurs with histories of grit, determination, and compelling product vision.
In the portfolios listed I tend to shy away from leverage and almost never hold cash. For this reason allocation will almost always total 100%, almost never over 100% or net short. Sometimes it will be a little ways under 100% (+/- a wide margin) when I’m putting on an arb play or want to stay balanced in a choppy market.
Equities, Fixed Income, and Commodities
Equities often make up the bulk of my personal holdings, though sometimes they do not. I diversify across a.) a primarily long-only ETFs b.) ML signal managed long/short, and c.) algorithmic trading with a small group of quant friends.
b.) and c.) not relevant as lots of turnover with algos we run internally and various high to medium frequency approaches; I’m brainstorming the best way to show these in public...
I tend to think about rebalancing fairly arbitrarily so don’t assume I’m some genius portfolio manager with expert rebalancing skills; I’m not. In a few days I’ll throw up an article I’ve been working on for systematic rebalancing in Python with Alpaca. I run these scripts for most portfolios where rebalancing is the primary concern over stock picking.
I joined the Ethereum ecosystem around late 2016 and started investing soon after. Around 2017/2018 I started writing code in the Ethereum ecosystem and bounced around various projects. I’ve since contributed to very little open source but stayed invested. Crypto remains a major source of inspiration for me. It feels similar to the early days of the internet. Dial up was my lullaby as a child so I tend to glamorize my youth as a product of the internet. Cryptocurrency has reignited some of the childlike feeling I had growing up on the internet.
I’m especially excited to see more use-cases arise as DeFi has emerged. Though even there the majority of use-cases remain rooted in pure speculation. Maturation of an ecosystem doesn’t happen over night. Though the maturation of cryptocurrency certainly feels accelerated. Tons of great projects around infrastructure. Projects like IPFS, The Graph, and others are some of the most interesting projects. I’m personally more interested in these projects than scaling efforts, though scaling efforts are obviously essential to our space.
Please be careful in and around DeFi. Many of these projects run on unaudited smart contracts with unproven mechanisms that have only been running for a few months, weeks, and sometimes even days (Yams anyone?).
Early Stage Technology
I do not actively invest in early stage tech companies or early stage risk capital, but I do actively follow early stage companies I am particularly fond of. The level of work required to establish high quality deal flow is immense and requires a deep network. For this reason, folks with established networks and a history in exiting companies or working in VC are advantaged.
Returns are generally very good for the top tier firms. For the other 80 or 90%, returns are relatively poor or average for early stage risk capital. I haven’t done sufficient research to determine if investing in run of the mill VC firms or syndicates helps build a better portfolio. Certainly if you’re able to invest in the Sequoia Capitals or Accels of the world then have at it (though like top tier HFs, the minimums are very high).
Here is my criteria for early stage companies I track.
Technologies: AI/ML, Data Science, IoT, Cybersecurity, Collaboration, Cryptocurrency/Distributed Systems
Stages: Pre-Seed, Seed, Series A
You can also find some sample code for quant finance, miscellaneous analytics, option pricing, valuation analysis, and visualizations on GitHub.
Tables with holdings updated automatically. Words last updated: 8/15/2018
Originally published at https://www.lukeposey.com.