ζ Portfolio Update: February/26 Rebalancing

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The Alpha Hedge AI Algo Portfolio closed December down 1.1% and finished 2025 with a total return of +21.9%, outperforming the S&P 500’s +16.4%. The S&P 500 remains in Phase 2 of the cycle.

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How can a market break winning streaks, lose trillions in mega caps, and still end the month strong?

The Alpha Hedge AI Algo Portfolio closed November down 0.8%, after four consecutive positive months, and now stands at +23.2% year-to-date, versus the S&P 500’s 16.45%. The S&P 500 remained in Phase 2 of the cycle throughout November.

Decode the Algorithms Behind Wall Street’s Moves from the Inside.

Turns AI investment management and quantitative investment strategies into results.

Discover AI investment opportunities, curated by our quant-driven AI Advisor Algorithm.

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Defense wins games. Offense builds legends.

In October 2025, volatility entered Phase 1 of the cycle, but the S&P 500 maintained its uptrend, so there were no changes to make in our portfolio for November. Still, keep your head up for the months ahead.

The Alpha Hedge AI Algo Portfolio closed the month up 5.6%, marking the fourth consecutive positive month and lifting year-to-date gains to 24.2%, compared to the S&P 500’s 16.3%.

Decode the Algorithms Behind Wall Street’s Moves from the Inside.

Turns AI investment management and quantitative investment strategies into results.

Discover AI investment opportunities, curated by our quant-driven AI Advisor Algorithm.

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Math Over Emotion: September’s Market Lesson

Decode the Algorithms Behind Wall Street’s Moves from the Inside.

Turns AI investment management and quantitative investment strategies into results.

Discover AI investment opportunities, curated by our quant-driven AI Advisor Algorithm.

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Most investors confuse patience with doing nothing. But in markets, restraint is strategy.

Decode the Algorithms Behind Wall Street’s Moves from the Inside.

Turns AI investment management and quantitative investment strategies into results.

Discover AI investment opportunities, curated by our quant-driven AI Advisor Algorithm.

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This isn't theory. It's the actual execution of our annual rebalance, triggered by data, not opinion as we enter a new Alpha Cycle.

Want to see how our rebalance really works?

Follow the Alpha Hedge AI Algo Portfolio inside the Wall Street Insider Report, and get behind the algorithms driving real performance.

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One of the most common mistakes I see among investors and advisors is expecting a system to solve every market condition.

That’s not strategy. That’s wishful thinking.

As Michael Porter said, “The essence of strategy is choosing what not to do.”
And in algorithmic portfolio design, this isn’t just philosophy, it’s architecture.

At Zurique Capital, we don’t build systems that try to capture every signal, every asset, every opportunity. We build for clarity and precision.

Our Alpha Hedge AI Algo Portfolio focuses on a single high-conviction asset or cash.
It’s not trying to do everything. It’s built to do the right thing, at the right time, based on cycle signals that have survived 17 market turns.

That focus means tradeoffs. Less diversification. More conviction. Lower noise. Higher signal. And full transparency on what we intentionally exclude.

Let’s start with a quick breakdown of how the markets moved in May.

What If That Bounce in Stocks Was Just Noise?

In May, our equity and fixed income signals diverged.

U.S. stocks rebounded sharply after April’s drawdown, but the trend has not yet confirmed bullish. That’s why we didn’t increase equity exposure.

Fixed income, meanwhile, showed weakness. The middle of the yield curve lost momentum, so we shifted toward a floating rate strategy.

We don’t predict reversals.
We act when the data confirms them.

The S&P 500 remains in Phase 6.

Protection cycle. No entries. No risk exposure.

But signs of change are starting to form.

Microsoft and NVIDIA ended the month in Phase 2, one step away from a confirmed uptrend.

Apple remains negative, closing the month down 4.07%.
Amazon , Meta , Alphabet , and Tesla still show no trend reversal.

So why does it matter?

Because two of the three largest weights in the index are pointing to a shift.

When leadership changes cycle, it often precedes broader market movement.
But our strategy doesn’t jump early.
We wait for confirmation.
We listen to the cycle.
We let the math decide.

June/25 Portfolio Rebalancing

This Month, the Best Position Wasn’t Alpha. It was Patience.

Let me explain 100% of the portfolio moves into cash.
That’s exactly what we did this month.

Our Alpha Hedge AI Algo signaled no entry for either the Alpha or Hedge Asset in June.

So we allocated 95% to a Cash Equivalent ETF with strong yield, and kept 5% unallocated.
This isn’t passive. It’s protection, part of a 17-cycle-tested strategy that waits for signals, not stories.

A client asked:
“What if Alpha rallies next month?”

My answer: it might.
But we’ve seen that before, rebounds that turn into bull traps.
One quick example: Alpha surged 10%, then dropped 59% two months later.

That’s why we don’t front-run the signal.

If the conditions align, we re-enter at the July open.
Until then, we preserve capital, earn yield, and let the cycle confirm the move.

Since 2009, this AI-driven system has rotated through just 17 positions.
Yet it turned $50K into over $13.8M.
That’s a CAGR of 40.99%.

Meanwhile, Buy & Hold S&P 500 returned 552.73% in the same period.

Right now, we’re in Hedge Cycle 9.
That means: full cash allocation.
Capital protected. Yield earned.

While others stay exposed, we wait.

What Do We Expect Next?

The market doesn’t move without a catalyst. Are you watching the right ones?

We look at pressure.

Three overlooked catalysts are building momentum beneath the surface:

1. Student loan collections are back.
   Delinquency rates jumped from 0.7% to 8% in one quarter.
   That’s billions in lost consumer spending, enough to drag GDP by 0.1%, according to Morgan Stanley.

2. Housing demand is deteriorating.
   Pending home sales dropped 6.3% in April.
   Inventory is up 21% from last year.
   Rates at 6.86% are locking buyers out of the market.

3. Tariff policy just snapped.
   A federal court ruled Trump’s broad tariffs invalid.
   It may be temporary, but it signals instability in trade—right when supply chains are already fragile.

None of these headlines alone would move the market.

But together, they build pressure.
And pressure is what triggers trend changes.

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In investing, uncertainty is guaranteed, not a glitch. At Zurique Capital, we've learned complexity doesn't provide safety, it adds vulnerability. April's market swings vividly illustrated volatility clustering, proving once again that extreme market moves happen in waves.

Our Alpha Hedge AI Algo Portfolio isn't designed to dodge every bump but to adapt swiftly, simplifying strategies, prioritizing trends, and consistently minimizing risk exposure. Discipline, flexibility, and systematic simplicity turn volatility into opportunity.

Stocks Crashed 20% In Days, The Fastest Fall Since COVID

April’s equity markets saw their fastest declines since the onset of COVID-19, briefly touching bear-market territory due to tariff uncertainties. Although U.S. stocks stabilized later, the damage triggered clear downtrends. Real estate also weakened significantly, losing its already fragile footing in 2025.

At Zurique Capital, our Alpha Hedge AI Algo Portfolio systematically responded by sharply reducing equity exposure, reallocating to hedged positions, and fixed-income assets. This tactical shift is evidence that disciplined, algorithm-driven strategies can swiftly minimize exposure and reposition for stability.

Our AI Caught 3 Economic Signals Hinting at Major Shifts

Zurique Capital’s AI algorithms detected three critical signals of a potential market shift:

1. GDP Pullback: U.S. GDP contracted 0.3% in Q1 2025, the largest decline since early 2022—driven by tariff-induced import spikes and slowing consumer activity.

2. Consumer Sentiment Crash: April’s University of Michigan poll showed sentiment dropping sharply to 52.2, historic lows for Democrats (34.4) contrasting sharply with bullish Republican sentiment (90.2).

3. Spending Decline: Consumer spending growth fell from 4% to just 1.8% within one quarter, as households notably cut back on discretionary travel and entertainment expenses.

Our Alpha Hedge AI Algo Portfolio is systematically adjusting exposure, proactively responding to these clear economic warnings.

The ‘Best 10 Days’ Investing Rule Is Dangerously Wrong

Perfect market robustness doesn't exist, markets inevitably break historical norms. Zurique Capital’s systematic approach is grounded in the understanding that predicting markets is futile, but robust, simple rules consistently work.

Our research disproves the popular investing myth: "You can't miss the best 10 days." Actually, the data shows these best days cluster alongside the worst days, both typically during downtrends. In April, the S&P 500 surged 9.5% on its third-best day ever, but only after collapsing over 10% in two prior days. Mathematically, investors would have gained by missing them altogether.

Imagine an investor holding $100 invested in the S&P 500 before the volatile days:

Final amount after all three volatile days: $99.35

Analysis:

• Initial value before volatility: $100

• Final value after volatility: $99.35

• Net loss: 0.65%

If an investor had avoided all three days entirely, they would still have $100, outperforming someone who experienced both the severe declines and the subsequent rally.

At Zurique, our Alpha Hedge AI systematically avoids these volatility clusters, hedging U.S. equity exposure precisely when markets signal danger.

May/25 Portfolio Rebalancing

The Alpha Hedge Portfolio remained in HEDGE MODE for May.

The S&P 500 entered Phase 6 of the market cycle in April, prompting a defensive portfolio allocation adjustment.

Our public portfolio is currently positioned in AGGRESSIVE MODE.

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The Alpha Hedge Portfolio will enter HEDGE MODE in April.

The S&P 500 entered Phase 5 of the market cycle in March, so the portfolio allocation must be updated by March 31.

Our current position will be AGGRESSIVE in our public portfolio..

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The Alpha Hedge Portfolio will remain in RISK-ON MODE. The allocation adjustments solely reflect the market movements observed in February.

The S&P 500 remains in Phase 4 of the Cycle, so the portfolio allocation will be maintained with only minor adjustments. These adjustments are strategically calculated based on the February performance of key assets.

Our current position is MODERATE. For investors starting the Alpha Hedge AI Algo Portfolio this month, the CONSERVATIVE mode is recommended, or even maintaining a full cash position may be considered. Aggressive positions are not recommended due to indicators suggesting the end of the S&P 500's current market cycle.

Alpha Hedge Portfolio Result February/2025

• Portfolio Result February/2025: -1.7%

• Alpha Hedge Portfolio Result 2025: 0.8%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has achieved $71,738 from the original investment of $50,000, a 43.4% gain since September, 17, 2021 (date we public shared publicly the evolution of our portfolio and considering typical broker commission and platform subscription).

The S&P 500 had a gain of 34.3% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved 11.0% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 53.5% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 4.3 : 1, which means the gains are 4.3 times the losses.

• Correlation with S&P 500: With a correlation of 0.207 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.61 and Sortino Ratio of 0.85 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.16 suggests low market sensitivity, while an alpha of 0.02 indicates its ability to generate excess returns above the market benchmark.

• Max Drawdown: The portfolio experienced a maximum drawdown of 21.7%.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

01/01/2009 to 02/28/2025

Since 2009, our strategy has navigated through 8 Alpha Cycles. These are periods when the S&P 500 is in an uptrend, and we allocate our portfolio to an Alpha Asset that drives performance.

Currently, we are in an Alpha Cycle, which began in January 2024 and is projected to continue in March 2025.

Historically, at the end of all previous Alpha Cycles, our portfolio outperformed the S&P.

We have also gone through 8 Protection Cycles, which occur when the S&P is in a downtrend. In these periods, we allocate to Hedge Assets that minimize risk and provide opportunities for profit.

Since 2009, our compounded annual return stands at 43.9% per year, outperforming the S&P’s 13.9%. We had maximum drawdown of -30%, compared to -26% for the S&P.

To put these numbers into perspective, let’s consider a $50,000 investment made in January 2009. By reinvesting all profits and dividends—without withdrawals—the results are striking:

Using the Zurique Capital strategy: The investment would have grown to $15.8 million.

Investing in the S&P 500: The same investment would be worth $329,554.40.

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The Future of Investing in an Uncertain World

What if I told you that the biggest mistake investors make isn’t picking the wrong stocks, misjudging interest rates, or even failing to time the market? The biggest mistake is assuming the future will look like the past.

I’ve spent years analyzing market cycles, economic indicators, and the psychology behind investing. I’ve seen fortunes built and destroyed by a single assumption: that yesterday’s trends will repeat tomorrow. But here’s the truth: markets evolve, and those who fail to adapt are left behind. Today, I want to talk about how we can navigate this ever-changing landscape with confidence, leveraging data, trends, and a clear investment strategy that protects and grows wealth in an uncertain world.

The market isn’t just about numbers, it’s about recognizing cycles, adapting to change, and staying ahead of the curve. Today, we’re at a pivotal moment where interest rates, global equities, and investor sentiment are shifting dramatically. The key to building wealth is not just reacting to these changes, but anticipating them.

The Rise of U.S. Equities & The Power of Allocation

This year, we’re seeing U.S. equities hit new highs while international markets, emerging economies, and real estate struggle. This isn’t a coincidence. It’s a direct result of capital flowing toward stability and performance. The lesson? Investors must be willing to shift their exposure, not based on emotion or past loyalties, but on real-time data.

The Role of Interest Rates & Fixed Income Strategies

The Federal Reserve’s recent decisions have created a standstill in fixed income markets. Bond prices remain under pressure, and uncertainty around tariffs and government policies means we’re not likely to see immediate clarity. The best move? Rather than chase yield, positioning portfolios in floating rate strategies, essentially mimicking Treasury bills, providing safety while waiting for the next opportunity.

The Economic Catalysts That Will Shape 2025

Three forces will define the next chapter of investing:

• GDP Growth: The U.S. economy grew at 2.5% last year—slower than before, but still resilient despite inflation fears.

• Consumer Spending: Americans have defied expectations with record spending, keeping the economy afloat.

• Federal Reserve Policy: The Fed’s pause on rate cuts signals caution, and investors should take the same approach, watching closely, but not acting impulsively.

So what can you do today? Three things:

1. Follow the Trends, Not Your Emotions: Don’t get attached to yesterday’s winners, stay where the data leads you.

2. Stay Nimble: Your portfolio should be like a chess game, where every move is intentional and based on the current board, not the last one.

3. Be a Student of the Market: The economy is a living, breathing thing, and those who study it will always have the upper hand.

The future of investing isn’t about certainty, it’s about agility. It’s about making decisions with clarity, confidence, and strategy.

One way to achieve this agility is through a focused, 1-asset portfolio strategy. By concentrating capital into a single asset that aligns with the dominant market trend, investors gain the ability to pivot quickly, reduce unnecessary exposure, and maximize returns when conditions shift. This approach removes the inefficiencies of over-diversification and allows for precise, data-driven decisions, making it the ultimate strategy for staying ahead in an evolving market.

Alpha Hedge Portfolio Allocation February/2025

The Alpha Hedge Portfolio will remain in RISK-ON MODE. The allocation adjustments solely reflect the market movements observed in January.

The S&P 500 remains in Phase 4 of the Cycle, so the portfolio allocation will be maintained with only minor adjustments. These adjustments are strategically calculated based on the January performance of key assets.

1. Overview of the Analysis

   • The top 13 assets in the S&P 500 are analyzed based on percentage movement in January.

   • The X-axis represents market capitalization (heavier weight means more influence on the index).

   • The Y-axis represents price appreciation for the month.

2. S&P 500 Performance in January

   • The S&P 500 gained 2.7% in January.

   • This growth was driven by major tech stocks, particularly:

     • Amazon

     • Meta

     • Alphabet

   • Tesla and (Broadcom) also contributed positively, but their weight in the index is smaller.

3. Stocks That Had Little or Negative Impact

   • Microsoft remained nearly unchanged, with a 0.02% increase.

   • Apple and Nvidia dragged the index down, posting negative returns for the month.

Indicators Suggesting the End of the S&P 500's Current Market Cycle

Several indicators—rising volatility, interest rate cuts, and historical election cycle patterns—suggest that the S&P 500 may be approaching the end of its current cycle.

1. Rising Volatility as a Warning Signal

   • The volatility index has been trending upwards for months.

   • Historically, when this occurs, the S&P 500 enters a downtrend a few months later.

2. Interest Rate Cuts and Market Reactions

   • The U.S. government has started cutting interest rates.

   • The best phase for stocks is typically the pause between rate hikes and the first rate cut.

   • Stock market growth slows after the first cut, signaling potential weakness ahead.

3. Election Cycle and Market Performance

   • Election years typically yield strong market performance, while the first year of a new administration often sees a downturn.

   • The S&P 500 has outperformed the historical election-year average return (16%), with a 23.31% gain last year.

   • Mean reversion is expected, potentially leading to a 15-20% decline over the next two years.

4. Historical Market Cycle Analysis

   • Research from Stan Weinstein, covering over 100 years of U.S. market cycles, suggests market declines are independent of political parties.

   • Given historical patterns, investors should prepare for a potential downturn.

5. Investment Strategy Recommendations

   • New investors should adopt a conservative position.

   • Suggested allocation: maximum 9% of the portfolio in this market.

   • Aggressive strategies should be avoided, with high-risk allocations kept at zero.

A potential market correction of 15-20% is expected over the next two years. As a precaution, investors should maintain a conservative approach and avoid aggressive positions.

Alpha Hedge Portfolio Result January/2025

09/17/2021 to 01/31/2025

• Alpha Hedge Portfolio Result January/2025: +2.5%

• Alpha Hedge Portfolio Result 2025: +2.5%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has grown significantly, with its value reaching $73,103 from the original investment of $50,000, a 46.2% gain since September, 17, 2021 (date we public shared publicly the evolution of our portfolio and considering typical broker commission and platform subscription).

The S&P 500 had a gain of 31.2% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved 11.9% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 54.8% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 4.5 : 1, which means the gains are 4.5 times the losses.

• Correlation with S&P 500: With a correlation of 0.201 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.66 and Sortino Ratio of 0.92 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.15 suggests low market sensitivity, while an alpha of 0.02 indicates its ability to generate excess returns above the market benchmark.

• Max Drawdown: The portfolio experienced a maximum drawdown of 21.7%.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

2013 to 01/31/2025

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The Story of Resilience: Markets and the Economy in 2024

Let me start with a question: What makes a year unforgettable? For investors, 2024 has been nothing short of remarkable. The Nasdaq surged over 31%, the S&P 500 climbed more than 25%, and the Dow Jones added 14%. These are just numbers, right? But beneath these figures lies a story of resilience, adaptation, and the interplay of human ambition and systemic forces.

I’m here to share a story that goes beyond the charts. It’s a story about our collective ability to navigate uncertainty and find opportunities in the face of change.

2024 was a testament to the resilience of markets and the economy. Despite political upheavals, inflationary pressures, and a cooling labor market, the world showed us that growth and stability are achievable, even amidst turbulence.

The Magnificent Seven and the Bull Market Surge

The bull market continued to roar, fueled by corporate earnings and the tech sector’s "Magnificent Seven": Nvidia , Tesla , Alphabet , Amazon , Apple , Microsoft , and Meta .

Nvidia alone surged over 175%, showing the outsized role of innovation in shaping market dynamics. However, the concentration of wealth in a few stocks also raised important questions. The top 10 companies in the S&P 500 now account for nearly 40% of the index’s market cap — the highest in 30 years.

What does this mean for the broader market? Incredible momentum!

Navigating Complexity: The Economy’s Balancing Act

2024 brought a presidential election like no other.

Donald Trump’s victory after a tumultuous campaign sparked a wave of market reactions.

Bitcoin surged past $100,000, bolstered by pro-crypto politics. Yet, the election also reignited inflation fears. Proposed tariffs and tax cuts raised questions about the sustainability of growth. It’s a vivid reminder that politics and markets are intricately linked, often in unpredictable ways.

Navigating Complexity: The Economy’s Balancing Act

The U.S. economy demonstrated resilience with robust GDP growth, strong retail sales, and a steady unemployment rate of 4%.

But inflation remained a challenge. Even as it moderated, sticky core price increases and persistent wage pressures kept the Federal Reserve cautious.

The Fed’s easing cycle was slower than expected, signaling a more deliberate approach to balancing growth and inflation. This cautious optimism reflects the delicate dance between monetary policy and market expectations.

The Human Spirit Behind the Numbers

I’ve watched markets recover from crashes, ride waves of exuberance, and grapple with uncertainty.

Each time, I’m reminded of the human spirit — our ability to adapt, to innovate, and to persevere.

2024 wasn’t just about charts and indices; it was about people. Entrepreneurs driving growth, policymakers navigating crises, and investors like you and me seeking stability amidst chaos. It’s a story of hope, and it’s a story we’re all part of.

Shaping Tomorrow: Lessons from 2024

As we look to 2025, let’s remember the lessons of 2024. Markets thrive on resilience, but they also demand vigilance and adaptability. Whether you’re an investor, a policymaker, or someone trying to make sense of it all, take this message to heart: the future is unwritten, but it’s in our hands. Let’s write it with wisdom, courage, and a commitment to building a better world through the opportunities we seize today.

Alpha Hedge Portfolio Result December/2024

In this video, we dive into a detailed analysis of our assets and portfolio strategy surrounding the S&P 500 Index.

We discuss the concepts of alpha assets and hedge assets, highlighting allocation strategies during bull and bear market cycles.

We analyze the past 16 years of performance, the current upward trend of the S&P 500, and the Phase 4 euphoria we are experiencing, with plans to maintain alpha positions through 2025.

Additionally, we address factors that may signal the end of the cycle, such as interest rate cuts, increased volatility, and the presidential cycle. The discussion delves into historical data and forecasts, providing a clear view of our conservative portfolio management strategy.

The Alpha Hedge Portfolio will remain in RISK-ON MODE. The allocation adjustments solely reflect the market movements observed in November.

09/17/2021 to 12/31/2024

• Alpha Hedge Portfolio Result December/2024: -3.0%

• Alpha Hedge Portfolio Result 2024: +18.8%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has grown significantly, with its value reaching $71,568 from the original investment of $50,000, a 46.0% gain since September, 17, 2021 (date we public shared publicly the evolution of our portfolio and considering typical broker commission and platform subscription).

The S&P 500 had a gain of 27.7% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved 11.4% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 55% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 4.3:1, which means the gains are 4.3 times the losses.

• Correlation with S&P 500: With a correlation of 0.188 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.63 and Sortino Ratio of 0.89 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.14 suggests low market sensitivity, while an alpha of 0.02 indicates its ability to generate excess returns above the market benchmark.

• Max Drawdown: The portfolio experienced a maximum drawdown of 21.7%.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

2013 to 12/31/2024

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It’s never just luck.

November was a standout month for U.S. equities, with mid and small caps leading broad-based gains, while large caps maintained their dominance year-to-date. All segments are now in textbook uptrends, contrasting sharply with international markets, where developed and emerging markets slipped into downtrends.

Our Alpha Hedge AI Algo Portfolio navigated these shifts with precision, staying in RISK-ON mode to capitalize on opportunities. Key November highlights:

• Monthly Gain: +6.1%

• 2024 Year-to-Date Gain: +22.5%

• Portfolio Growth Since September 2021: 47.4%, compared to the S&P 500's 31.0%

Beyond returns, the portfolio continues to outperform with:

• Compounded Annual Return: 12.8%

• Profit Factor: 4.5:1

• Low Correlation to S&P 500: 0.178 (a powerful diversification tool)

By leveraging disciplined, adaptive strategies, our portfolio reflects the potential of AI-driven investment management to optimize outcomes, even amidst divergent global trends.

How are you navigating market cycles as we head into 2024? Do you see AI as the key to staying ahead? Let’s discuss in the comments! 👇

December/24 Alpha Hedge AI Algo Portfolio Rebalancing

Monthly Portfolio Allocation Overview

U.S. Equities

U.S. stocks delivered a calm and strong performance in November.

But not all markets shared this resilience.

U.S. equities defied expectations last month, with large caps continuing their dominance year-to-date. However, the real story lies in mid and small caps, which led November’s broad-based gains. Remarkably, all segments of U.S. equities are in textbook uptrends as we enter the final month of 2024.

Meanwhile, the "America First" narrative provided a tailwind for domestic stocks, but international markets didn’t fare as well. Both developed and emerging markets slipped into downtrends over the intermediate term, highlighting a stark divergence in global equity performance.

Navigating these trends with a clear strategy will be critical for optimizing portfolio performance as we approach year-end.

In November, the S&P 500 kept Its Phase 4 of the Market Cycle.

U.S. Fixed Income

November continued the retracement in bond prices that began in September, during which exposure to floating-rate strategies increased. These strategies now comprise 57% of the portfolio.

This shift highlights the power of disciplined, adaptive strategies in effectively navigating market cycles with precision.

The Alpha Hedge Portfolio will remain in RISK-ON MODE. The allocation adjustments solely reflect the market movements observed in November.

Alpha Hedge Portfolio Result November/2024

09/17/2021 to 11/29/2024

• Alpha Hedge Portfolio Result November/2024: +6.1%

• Alpha Hedge Portfolio Result 2024: +22.5%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has grown significantly, with its value reaching $73,630 from the original investment of $50,000, a 47.4% gain since September, 17, 2021 (date we public shared publicly the evolution of our portfolio and considering typical broker commission and platform subscription).

The S&P 500 had a gain of 31.0% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved 12.8% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 55% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 4.5:1, which means the gains are 4.5 times the losses.

• Correlation with S&P 500: With a correlation of 0.178 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.71 and Sortino Ratio of 1.00 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.13 suggests low market sensitivity, while an alpha of 0.03 indicates its ability to generate excess returns above the market benchmark.

• Max Drawdown: The portfolio experienced a maximum drawdown of 21.7%.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

2013 to 11/29/2024

In 2021, the Alpha Hedge Portfolio increased 10x, yielding a 967% return on the initial investment. This was achieved without any new contributions or withdrawals, with profits reinvested and dividends excluded throughout the period.

Unlock the Alpha Hedge AI Algo Portfolio ↓

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November/24 Alpha Hedge AI Algo Portfolio Rebalancing

Monthly Portfolio Allocation Overview

U.S. Equities

The S&P 500 index has reached new highs despite heightened election tensions and escalating conflicts in the Middle East. U.S. large-cap growth stocks have led performance, with nearly all sectors showing strength in 2024.

While overall market volatility remains high, the Alpha Hedge Portfolio has stayed relatively stable due to our moderate allocation since August. U.S. equity allocations will remain unchanged in November.

In October, the S&P 500 remained in Phase 4 of the Market Cycle, as analyzed by the Alpha Hedge AI-Algorithm.

In October, the S&P 500 kept Its Phase 4 of the Market Cycle.

U.S. Fixed Income

We will also maintain our position in Fixed Income through the floating rate strategy. This strategy provides interest payments that adjust with short-term interest rates, making it a lower-risk, income-generating option when rates rise.

This approach is appealing to investors seeking inflation protection and stable income without the price volatility typical of fixed-rate bonds. Our fixed income allocation offers regular income while maintaining high liquidity and safety, as it is backed by the U.S. government.

The Alpha Hedge Portfolio will remain in RISK-ON MODE.

Alpha Hedge Portfolio Result October/2024

09/17/2021 to 11/01/2024

• Alpha Hedge Portfolio Result October/2024: -1.3%

• Alpha Hedge Portfolio Result 2024: +15.8%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has grown significantly, with its value reaching $69,661 from the original investment of $50,000, a 38.9% gain since September, 17, 2021 (date we public shared publicly the evolution of our portfolio and considering typical broker commission and platform subscription).

The S&P 500 had a gain of 24.4% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved 11.2% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 56.4% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 4.0:1, which means the gains are 4 times the losses.

• Correlation with S&P 500: With a correlation of 0.165 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.61 and Sortino Ratio of 0.86 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.12 suggests low market sensitivity, while an alpha of 0.02 indicates its ability to generate excess returns above the market benchmark.

• Max Drawdown: The portfolio experienced a maximum drawdown of 21.7%.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

2013 to 11/01/2024

In 2021, the Alpha Hedge Portfolio increased 10x, yielding a 967% return on the initial investment. This was achieved without any new contributions or withdrawals, with profits reinvested and dividends excluded throughout the period.

Unlock the Alpha Hedge AI Algo Portfolio ↓

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October/24 Alpha Hedge AI Algo Portfolio Rebalancing

Monthly Portfolio Allocation Overview

As we enter October, it is essential to review our asset allocations in light of evolving market conditions.

However, after a thorough analysis, no adjustments will be made to the portfolio this month. The current allocation continues to align with our performance and risk management objectives.

Let's explore the rationale behind maintaining the existing allocation and how it supports our long-term strategy.

U.S. Equities

We will maintain our exposure to U.S. equities in September.

In September 2024, the S&P 500 experienced a positive performance, driven by investor anticipation of Federal Reserve interest rate decisions.

During the first half of the month, the S&P 500 saw a strong rebound, rising by about 4% during the second week of September, with the index hovering around 5,626.

This rise was partially attributed to expectations of a potential rate cut by the Federal Reserve, which fueled optimism among equity investors.

U.S. Fixed Income

In September 2024, the U.S. fixed income market saw significant fluctuations, primarily driven by evolving expectations around Federal Reserve policy. Treasury yields moved higher, with the 10-year Treasury yield reaching 3.65%, reflecting the market's anticipation of possible interest rate cuts later in the year.

This dynamic environment highlighted the importance of interest rate expectations in driving bond market movements, with investors recalibrating their strategies based on signals from both economic data and Fed communications.

In August, the S&P 500 kept Its Phase 4 of the Market Cycle.

The positions in the Alpha Hedge Portfolio for the Equities and Fixed Income will be maintained in October.

The Alpha Hedge Portfolio will remain in RISK-ON MODE.

Alpha Hedge Portfolio Result September/2024

09/17/2021 to 09/27/2024

• Alpha Hedge Portfolio Result August/2024: +1.3%

• Alpha Hedge Portfolio Result 2024: +16.4%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has grown significantly, with its value reaching $70,056 from the original investment of $50,000, a 40.2% gain since September, 17, 2021 (date we public shared publicly the evolution of our portfolio). The S&P 500 had a gain of 25.2% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved 11.7% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 55.6% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 4.0:1, which means the gains are 4 times the losses.

• Correlation with S&P 500: With a correlation of 0.157 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.64 and Sortino Ratio of 0.90 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.12 suggests low market sensitivity, while an alpha of 0.03 indicates its ability to generate excess returns above the market benchmark.

• Max Drawdown: The portfolio experienced a maximum drawdown of 21.7%.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

2013 to 09/17/2021

In 2021, the Alpha Hedge Portfolio increased 10x, yielding a 967% return on the initial investment. This was achieved without any new contributions or withdrawals, with profits reinvested and dividends excluded throughout the period.

Unlock the Alpha Hedge AI Algo Portfolio ↓

Read more

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September/24 Alpha Hedge AI Algo Portfolio Rebalancing

Monthly Portfolio Allocation Overview

As we move into a new month, it's crucial to review and adjust our asset allocations based on evolving market trends. This month, slight changes are being made across equities and fixed income asset classes to optimize performance and manage risk.

Let's dive into the specific adjustments and the rationale behind each decision.

U.S. Equities: A Shift

We reduced our exposure to U.S. equities through our risk management process at the beginning of August.

The positive trends following the decline early in August signal that this asset class is still a powerhouse in our portfolio. By maintaining a MODERATE position, we're capitalizing on its sustained strength while making room for other emerging opportunities and controlling risks.

Interestingly, the reduction in U.S. equity exposure is being reallocated to fixed income, which has been gradually gaining traction. This shift reflects our commitment to keeping the portfolio balanced and dynamic.

U.S. Fixed Income

In fixed income, we're seeing gradual improvement in trends, leading to an increase in exposure. While we're cautiously optimistic about this trend continuing, even with the next expected rate reductions in the coming months.

In August, the S&P 500 kept Its Phase 4 of the Market Cycle.

The positions in the Alpha Hedge Portfolio for the Equities market was reduced in August and will be maintained in September.

The Alpha Hedge Portfolio will remain in RISK-ON MODE.

Alpha Hedge Portfolio Result August/2024

09/17/2021 to 09/01/2024

• Alpha Hedge Portfolio Result August/2024: -4.1%

• Alpha Hedge Portfolio Result 2024: +15%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has grown significantly, with its value reaching $69,104 from the original investment of $50,000, a 38.2% gain since September, 17, 2021, date we public shared publicly the evolution of our portfolio.

The S&P 500 had a gain of 26.4% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved 11.4% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 55.6% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 3.8:1, which means the gains are 3.8 times the losses.

• Correlation with S&P 500: With a correlation of 0.145 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.63 and Sortino Ratio of 0.88 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.11 suggests low market sensitivity, while an alpha of 0.02 indicates its ability to generate excess returns above the market benchmark.

• Max Drawdown: The portfolio experienced a maximum drawdown of 21.7%.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

2013 to 09/17/2021

In 2021, the Alpha Hedge Portfolio increased 10x, yielding a 967% return on the initial investment. This was achieved without any new contributions or withdrawals, with profits reinvested and dividends excluded throughout the period.

Unlock the Alpha Hedge AI Algo Portfolio ↓

Read more

AI-Powered Insider-Level Insights to Exponentially Expand Wealth by Decoding Wall Street.

Join our global community of investors who are leveraging cutting-edge technology to build and preserve wealth for future generations.

Click Here to Build Legacy Wealth

If the link doesn’t work, copy this link in your browser: https://wallstreetinsiderglobal.com/build-legacy-wealth

August/24: Monthly Alpha Hedge Portfolio Allocation Update

Understanding and Mitigating Behavioral Biases in Investing

Behavioral biases are like hidden traps in the world of investing, often amplifying investor anxiety.

When steady gains are followed by declines, it can be particularly unnerving. This reaction is rooted in behavioral economic principles such as loss aversion and recency bias. Investors tend to fear losses more than they value gains, and recent market performance disproportionately impacts their decisions.

At Zurique Capital, we’re acutely aware of these biases and strive to mitigate them through our systematic investment process, the Alpha Hedge AI-Algorithm. Our approach ensures we stay disciplined during varied market environments, helping investors remain steadfast even during minor market corrections.

The Secret to Consistent Investment Success: AI-Systematic Portfolios

Our Alpha Hedge AI-Algorithm is designed to help investors maintain discipline through different market conditions.

Declines are a natural part of market behavior, where prices adjust after a significant run-up. Despite the discomfort these declines may cause, they generally shouldn’t prompt immediate concern or reactive decision-making.

With our disciplined systematic algorithm, we ensure that we stay invested, avoiding the pitfalls of emotional responses or prematurely being "bounced out" of a trend.

This approach helps us manage the Market Cycles effectively.

Why a Consistent Plan is Key to Investment Success

At Zurique Capital, our approach focuses on maintaining a consistent and dynamic plan. By adhering to a systematic process, we aim to navigate Market Cycles and maintain long-term compounding, even in the face of short-term volatility. This month, we’re exploring the impact of behavioral biases on investment decisions and how our AI-Algorithm can help mitigate these effects.

We’ll also discuss recent market events, how they fit into the context of a bear market’s anatomy, and our continued focus on preserving compounding through disciplined investing.

July Market Overview: Key Trends and Insights

Let's dive into what transpired in the markets in July.

• S&P 500 Index: Faced a mid-month pullback, potentially leading to its second negative month in 2024.

• Market Segments: Laggards like value , high dividend , and small caps became leaders, while tech and growth dropped to the back of the pack. Despite this role reversal, all segments remain in uptrends.

• Foreign Markets: Emerging markets are slightly ahead of their developed counterparts but are weaker compared to U.S. equities.

• Real Estate: Real estate securities are on pace to be the best-performing asset class in July, pushing into positive territory for the year and creating uptrends across all timeframes.

• Bonds: Performance has varied among different segments of the yield curve. Shorter-duration bonds have been the best performers, while longer-duration bonds have mixed trends.

3 Market Catalysts to Watch Right Now

Three potential catalysts could influence market trends:

1. Labor Market Cooling:

   • Unemployment rate increased to 4.1%, the first rise above 4% since 2021.

   • The hiring rate has fallen back to pre-COVID levels, with job openings per unemployed person returning to pre-pandemic levels.

2. Economic Balancing Act:

   • With inflation still above target and the labor market cooling, the Federal Reserve faces a dilemma on which issue to address.

   • The Fed does not expect demand or hiring to weaken soon, but if wrong, it may not cut rates quickly enough to forestall a recession.

3. Rising Home Prices:

   • For the second month, home prices hit a new high due to low inventory.

   • The national median existing home price rose to $426,900, a 4.1% increase from the previous year.

Why Context Matters in Understanding Market Cycles

Context is key in understanding market declines. At Zurique Capital, we’ve built a mental model to understand the different stages of market cycles. This model helps us manage emotions and make informed decisions.

Not all market cycles are equal. Context determines how one should respond. Our AI-Algorithm provides the necessary context to navigate these declines effectively.

While some cycles may turn into more severe declines, trying to time the market during a decline often backfires. Our research shows it’s far better to ignore these declines or even buy during them, depending on the signals from our disciplined systematic process.

This approach isn’t perfect, but it consistently outperforms reactive decision-making. At Zurique Capital, we take comfort in our rules-based, data-centric strategy. We might not know what will happen, but we know exactly what we’ll do depending on what does happen.

In August, the S&P 500 is in Phase 4 of the Market Cycle.

The positions in the Alpha Hedge Portfolio for the equities market will be maintained in August, marking 7 months without any position adjustments.

The Alpha Hedge Portfolio will remain overweight in RISK-ON MODE.

Alpha Hedge Portfolio Result July/2024

09/17/2021 to 08/02/2024

• Alpha Hedge Portfolio Result July/2024: -0.8%

• Alpha Hedge Portfolio Result 2024: +13%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has grown significantly, with its value reaching $67,864 from the original investment of $50,000, a 35.9% gain in 34 months.

The S&P 500 had a gain of 20 19.62% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved a remarkable 11.2% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 55.6% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 3.7:1, which means the gains are 3.7 times the losses.

• Correlation with S&P 500: With a correlation of 0.120 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.61 and Sortino Ratio of 0.87 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.09 suggests low market sensitivity, while an alpha of 0.02 indicates its ability to generate excess returns above the market benchmark.

• Max Drawdown: The portfolio experienced a maximum drawdown of 21.7%.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

2013 to 09/17/2021

In 2021, the Alpha Hedge Portfolio increased 10x, yielding a 967% return on the initial investment. This was achieved without any new contributions or withdrawals, with profits reinvested and dividends excluded throughout the period.

Unlock the Alpha Hedge Portfolio ↓

Read more

The prevailing culture in the investment world is that the best is the one who predicts highs and lows. Daily at Zurique Capital, we are asked whether the S&P 500 will rise or fall.

Although this is a pertinent concern for investors, our investment methodology is grounded in systemic market cycle analysis and probabilistic trend analysis.

With this approach, we transcend the analysis of bull and bear markets, because our portfolio will automatically react to these conditions.

We believe that emotional attachment to market movements—be it optimism, pessimism, or other subjective judgments—can lead to ego-driven decisions that are counterproductive.

Our Market Cycle / Trend Following approach is not about making bold predictions. It is about maintaining a clear, adaptable plan that can be applied consistently, regardless of market conditions.

In June, the S&P 500 is in Phase 4 of the Market Cycle.

The positions in the Alpha Hedge Portfolio for the equities market will be maintained in July, marking 6 months without any position adjustments.

The Alpha Hedge Portfolio will remain overweight in RISK-ON MODE.

Allocations will stay at MODERATE RISK-ACCEPTANCE MODE (51% exposure) as we transition from June to July.

Decoding June’s S&P 500 Landscape

In June, the markets presented several outliers, that could have triggered rash decisions without a systematic plan:

• The S&P 500 and artificial intelligence stocks reached new highs.

• The pronounced divergences between large-cap and small-cap stocks.

As we reach the halfway point of 2024, the S&P 500 Index has shown impressive performance:

• Up over 15% year-to-date (white line). .

• Increased in five of the six months this year.

• Increased in seven of the last eight months overall.

However, a closer look reveals significant disparities within the index and across U.S. stocks more broadly:

• The Dow Jones Industrial Average (orange line) is up 3.72% YTD.

• S&P Value stocks (green line) are providing roughly about 4%.

• S&P Small-cap stocks' (purple line) performance is underwhelming, decreasing -0.99% YTD.

• An equal-weighted measure of the S&P 500 (yellow line) shows a return of about 4%.

Fixed Income

The US 10-year rate has shown a decrease in the last 2 months, but the uptrend is still maintained.

Fixed Income position will also be maintained in July

Alpha Hedge Portfolio Result June/2024

09/17/2021 to 06/29/2024

• Alpha Hedge Portfolio Result June/2024: +6.3%

• Alpha Hedge Portfolio Result 2024: +20.3%

Since we publicly shared the evolution of our portfolio, the Alpha Hedge Portfolio has grown significantly, with its value reaching $70,846 from the original investment of $50,000, a 41.69% gain in 33 months.

The S&P 500 had a gain of 21.17% in the same period.

After analyzing the performance of the Alpha Hedge Portfolio, here are the key takeaways:

• Annual Return (Compounded): The Alpha Hedge Portfolio has achieved a remarkable 13.3% compounded annual return since its inception on September 17, 2021.

• Win Trades and Win Months: The portfolio has a win rate of 53.6% in trades and 58.8% in profitable months.

• Profit Factor: The portfolio boasts a profit factor of 4.3:1, which means the gains are 4.3 times the losses.

• Correlation with S&P 500: With a correlation of 0.084 to the S&P 500, the portfolio exhibits low correlation, indicating its potential as a diversification tool within a broader investment strategy.

• Sharpe and Sortino Ratios: The Sharpe Ratio of 0.75 and Sortino Ratio of 1.10 reflect the portfolio's risk-adjusted returns.

• Beta and Alpha: The portfolio's beta of 0.06 suggests low market sensitivity, while an alpha of 0.03 indicates its ability to generate excess returns above the market benchmark.

Understanding the Collective2 Portfolio

The Collective2 Portfolio was established on September 17, 2021, with an initial investment of $50,000 to ensure confidence in the presented results. This Platform allows our Premium Subscribers to access the Alpha Hedge Portfolio in real-time and join us on our journey to increase our portfolio tenfold within a decade.

⚠️*We execute the Alpha Hedge Strategy in a Real-Life Brokerage Account with Interactive Brokers integrated with the Platform Collective2, a U.S. regulated company based in New York.

This way, to ensure confidence in the presented results, we enable Premium Subscribers access to our positions in real time.

Alpha Hedge Portfolio Historical Data

2013 to 09/17/2021

In 2021, the Alpha Hedge Portfolio increased 10x, yielding a 967% return on the initial investment. This was achieved without any new contributions or withdrawals, with profits reinvested and dividends excluded throughout the period.

Unlock the Alpha Hedge Portfolio ↓

Read more