Hello everyone interested in The Ghost Disruptive Innovation Fund and welcome back to day 65!
Todays post will be all about the 1st quarter/3rd month results for The Fund. Todays post will talk more about the reweighting process and the final few moves to be made, some comparisons with our competitors, and what our next month and quarter will look like for the fund. The third month for the fund was another success, more reweighting's, a holding report on Iris Energy LTD (IREN) and ImmunityBio (IBRX), and another continuation of following all SEC Fund guidelines. While the first quarter of the fund has been rocky and results aren't necessarily where we would like to see them, all members of The Fund have developed a deeper knowledge of capital markets and of portfolio management. None of this would be possible without the continued support of our readers, through your helpful comments, opinions on holdings, and generosity in sharing market insights. We ask you please stay connected for future trades, updates on holdings, and more holding reports in the future. Thank you for the continued interest in The Ghost Disruptive Innovation Fund and we look forward to having a strong second quarter focused on beating our benchmarks!
The Reweighting Continues
Over the second month The Ghost Disruptive Innovation Fund began it's reweighting process by selling a majority of Bitcoin Proxies and replacing them with other companies in the industry. The Fund also began selling some Growth stocks like UiPath and Enphase Energy to move the capital towards stronger convictions. The 4 categories of stock: Stalwart, Growth, Cyclical, and Income Generators all remain and are slowly seeing assets categorized into each one of them. For the future of the reweighting, getting out of Stalwarts like PayPal (PYPL), Spotify (SPOT), Salesforce (CRM), and Eli Lilly (LLY) remains the goal, and slowly rotating the capital towards more growth stocks. However something important to remember is that the reweighting is still a very active process, and all of these companies may be sold or only a few of them, to best keep up to date with reweighting's, please look through past posts and be alert for new posts made in the coming weeks!
Covered Calls
Something to touch on from last months reports is Covered Calls. The Fund hasn't been involved in any Covered Calls and isn't looking to get involved with any in the foreseeable future. While Covered Calls are a great way to generate income in the shorter term. After 2 years, Covered Calls aren't profitable anymore and one is more likely to lose potential upside from a Covered Call then to generate potential premium. Essentially Covered Calls are good in the short term when you're ready to sell an asset, but anything longer than 24 months and you generally cut off most potential upside. The Fund isn't entirely done with Covered Calls, but in the current market state, capital is better remaining in Growth and Stalwarts.
Next Month Plans and Expectations
Over the next month The Fund aims to continue the reweighting and the slow rotation of capital towards better performing assets. More holding reports should slowly be released in the future, with hopefully half of the assets containing a holding report at end of year. The results for the first quarter have been disappointing and there's no hiding that, but convictions on the second quarter are incredibly strong. All Bitcoin charts point to new all time highs in the next 6 months, expectations of more fed rate cuts, and in November the close to the US presidential election, all events are expected to be catalysts for The Funds holdings. The Fund is looking to be positioned incredibly well to close out 2024 and enter into a strong Bitcoin 2025, while returns are negative currently, fund convictions are incredibly positive for the next quarter!
"The real key to making money in stocks, is to not get scared out of them." - Peter Lynch
Benchmarks
| Security/Fund | July 10th 2024 Value | October 10th 2024 Value | Quarter Return |
|---|---|---|---|
| Ghost Disruptive Innovation Fund | $200,000.00 | $178,793.83 | -10.60% |
| SPDR S&P 500 ETF Trust (SPY) | $561.32 | $576.13 | +2.63% |
| ARK Innovation ETF (ARKK) | $45.95 | $46.17 | +0.47% |
| Vanguard Information Technology Index Fund ETF (VGT) | $606.85 | $598.71 | -1.34% |
| VanEck Semiconductor ETF (SMH) | $281.27 | $254.65 | -9.46% |
| iShares US Technology ETF (IYW) | $158.73 | $154.68 | -2.55% |
| Valkyrie Bitcoin Miners ETF (WGMI) | $21.98 | $17.54 | -20.20% |
| Russell 2000 Index (RUT) | $2,051.75 | $2,188.42 | +6.66% |
| Tesla Inc (TSLA) | $263.26 | $238.77 | -9.30% |
| Nvidia Corp (NVDA) | $134.91 | $134.81 | -0.07% |
| Bitcoin | $57,713.40 | $59,647.82 | +3.35% |
October 10th 2024 Holdings
A small reminder for all of those interested in The Ghost Disruptive Innovation Fund: The fund is managed by college students who are new to navigating the world of finance. The fund is all paper money and not meant to be the basis of any investment thesis's or decisions. As a Disruptive Innovation Fund all investments are rooted in some form of risk and all interested should understand no investment is ever safe or guaranteed.
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