SENT: 4th Quarter 2021 Portfolio Review
The mid-small cap equity only portfolio holdings delivered around +4% returns for the quarter. The hedge on the mid-small cap portfolio holdings created around 1.5% in drag resulting in around 2.5% net returns for the hedge and equity portfolio together. Given the Russell 2000 returned only 2% for the quarter and the Russell 2000 Growth Index returned even less, we are not disappointed in this outcome in the portfolio. We will always be happy with market like returns even after the cost drag of the hedge.
The large cap equity only portfolio holdings struggled more to keep up with a strong move up in the S&P 500. The large cap equity only portion was up 9% for the quarter which lagged the S&P 500 which delivered 11% returns. The hedges on the large cap equity holdings produced a 3.5% drag resulting in around 5.3% net returns after the cost of the hedge. We’d prefer to capture more of the market upside, but the fast moving up market is often the most difficult to out-perform and 11% in one quarter for the S&P 500 is fast moving. Also, the hedges were expensive entering the quarter because of market volatility at the end of September.
SENT’s total portfolio delivered 3.3% for the quarter.
The biggest winners in the portfolio for the quarter delivering over 30% or more were Alpha & Omega Semiconductor (AOSL), Ambarella (AMBA), Cross Country Healthcare (CCRN), Macy’s (M), MaxLInear (MXL), Silicon Motion Technology (SIMO), Synaptics (SYNA), Advanced Micro (AMD), On Semiconductor (ON), and Nvidia (NVDA).
Correspondingly, the biggest losers, that produced returns -20% or less, were Prothena Corp (PRTA), BigCommerce Holdings (BIGC), Coupa Software (COUP), Domo Inc (DOMO), Exelixis (EXEL), Gap Inc (GAP), Sprout Social Inc (SPT), CrowdStrike Holdings (CRWD), Hubspot Inc (HUBS), and Snap Inc (SNAP).
|Ticker||Security Description||Portfolio Weight %|
|VSTO||VISTA OUTDOOR INC||1.21%|
|DKS||DICK’S SPORTING GOODS INC||1.17%|
|BJ||BJ’S WHOLESALE CLUB HOLDINGS||1.14%|
|SHOO||STEVEN MADDEN LTD||1.14%|
|TSCO||TRACTOR SUPPLY COMPANY||1.13%|
|CRTO||CRITEO SA-SPON ADR||1.13%|
|OXM||OXFORD INDUSTRIES INC||1.13%|
|RRR||RED ROCK RESORTS INC-CLASS A||1.13%|
|HD||HOME DEPOT INC||1.13%|
As of 12.31.2021. Cash is not included.