September: Positive month, portfolio adjusted for a more volatile market going forward

Inge Heydorn

Volatility in the market continued in September and technology companies were weak with a decline for the Nasdaq of 5.2 percent, the Dow Jones ended only down 2.3 percent. This was the first negative month since March. The big companies within FAANG were the big losers. The valuation multiples for these companies have expanded strongly during the year. However, they differ slightly between the companies as Amazon and Netflix have had their profits adjusted upwards during the year, while the others have had them downgraded in the wake of Covid. 

We reduced the risk further in the fund at the end of August and lost some returns as the market's high-risk companies continued to rush. Most of it we got back in September when the fund ended up 0.76 percent. During the downturn in the market, we increased further in companies that we believe had a really strong quarter such as Activision, Salesforce, Zynga and TSMC. We have tried to adjust the portfolio's beta slightly towards a more volatile development over the next month. We continue to collect data regarding September for the companies in order to position ourselves correctly for the quarterly reports.

See updated monthly data for the fund here:

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