November saw a continuation of high volatility and sharp swings in the markets, just as we saw in the last two months, with this new COVID variant 'of concern' adding more uncertainty into the mix.
The net result for Ubique was a loss on the month of 5.73%. This is a combination of a loss of 0.22% on Golden Ratio (S&P500), 0.09% on Keeping Up with the Joneses (Dow Jones), and 5.42% loss on Mettalica (Platinum). In comparison, the S&P500 lost 0.95%, the Dow Jones lost 3.77% and Platinum lost 8.7%. The takeaway here is that when the markets are bearish and are losing value, Ubique is losing at a slower rate than the market.
As our wagon is hitched to the overall market, in essence, it is important to limit the downside, enabling a quicker recovery and thus a higher return than the markets over the long term. Combine this with our use of discreet leverage, this gives up the opportunity to get more from the upside than the market alone can offer. Let that run for long enough, and if you can lose less than the market when its falls and take more profit than the market when its rises, you have a formula for long-term success.
Off the back of November's results, we have noticed a phenomenon within Mettalica, which after further due diligence, we are now looking to exploit. In short, we are changing a few characteristics of the 'signal' to get us in, which results in about the same gain, with roughly the same drawdown, but keeps us out of the markets by a factor of 3! The net result means that Ubique uses less leverage overall, thus derisking everything further, for the same outcome! If you would like to know more about the specifics of this, please get in contact and we can go through it in detail with you.
Looking forward into December, we are still long the S&P and Platinum, however, our Dow Jones trades are currently under a 'stay away' mandate, which may be revoked this month, depending on what the DJIA does. As it stands, we are on par to meet our CAGR of just over 20% return to our investors after fees for the year, having come off a high of over 30% earlier in the year.
If you have any questions or would like to know more about anything mentioned above, feel free to get in contact with us, and we'll happily have a chat with you about it.
Until next time, stay safe, and swing easy.
For more in-depth analysis, everything is on the website for inspection (www.willowoakadvisory.com/ubique)