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Bulletproof Investing Performance Update: Week 40

David Pinsen profile picture
David Pinsen


  • It's been six months since I presented four hedged portfolios and 10 top names in week 40 of my Marketplace service (March 1). Here's how everything did.
  • All of the hedged portfolios posted positive returns, though none outperformed its expected return, or SPY.
  • The top 10 names (unhedged) slightly outperformed SPY. This was the 33 top names cohort out of 39 to outperform the market so far.
  • Members of our private investing community, Bulletproof Investing, get our best ideas and insights. Get started today >>

Safety first: NASCAR driver Johanna Long and her helmet (via Autowise).

Bulletproof Investing: Week 40 Performance

Each week since the beginning of June 2017, I have presented at least two hedged portfolios created by Portfolio Armor to my Bulletproof Investing subscribers. This is an "investing with a helmet on" approach, and these portfolios are designed to last six months at most. As with any investment method, the returns with this approach will vary, but in the interests of transparency and accountability, I have promised to publicly share the final performance of everything I present, regardless of how it does.

Here, I update the final performance of the four hedged portfolios and the top 10 names (unhedged) that I presented in the 40th week I offered my service. Let's look at what I presented in week 40 and how it did.

Portfolio 1

This was the $100,000 portfolio presented here initially. The data below was as of March 1. The primary securities here were AbbVie (ABBV), Square (SQ), Twitter (TWTR), and US Steel (X). They were selected because they had the highest potential return estimates, net of hedging costs when hedging against a >16% decline, and they had share prices low enough that you could buy a round lot of one of them for less than $25,000. eBay (EBAY) was added in a fine-tuning step to absorb leftover cash from rounding down to round lots of the first four names.

The worst-case scenario for this portfolio was a decline of 14.86% (the "Max Drawdown"), and the best-case scenario was a gain of 20.17% (the "Net Potential Return" or aggregate potential return net of hedging cost). The "Expected Return" of 7.01% was a ballpark estimate taking into account that actual returns, historically, have averaged 0.3x Portfolio Armor's potential return estimates.

Portfolio 1

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This article was written by

David Pinsen profile picture
I developed the hedged portfolio method of investing at Portfolio Armor, and I run a Marketplace service at Seeking Alpha based on it called Bulletproof Investing.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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