December/24 Alpha Hedge AI Algo Portfolio Rebalancing
Monthly Portfolio Allocation Overview
Overnight Investment success?
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.
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