Andy's Angle Investing Portfolio: Key Updates

As we near the end of the third quarter of 2023, it's time to take a look at the Andy's Angle Investing Portfolio current positioning and expected changes.

Andy's Remarks:

I have maintained a similar composition for our portfolio over the last month or so consisting mainly of our two value picks, however I am looking into swapping these positions out in favor of more lucrative value opportunities.

While both these stocks have yielded strong returns for the portfolio, some on multiple separate occasions, I will be looking into more liquid names to be featured within the portfolio.

This is because value pick 4.0, despite being up over 20% since we initiated our position has very low liquidity and volume, hampering its ability to truly appreciate to proper valuations asides from catalysts such as earnings.

In addition to this, while the portfolio has been rather aggressive in terms of capital allocations over the last few months, I will most likely be winding down positioning into the end of the year because of a few different factors.

1. As I highlighted in last week's insight piece, markets are in the "late-cycle". The end of the tightening cycle in this case, which is going to leave the economy in an open-ended state. Even though risk seems to be considerably lower than it had been in late 2021 with rampant inflation, I believe the risks associated with high rates are being underappreciated by financial markets and will rear their heads as we close out 2023 and head into 2024.
2. Our portfolio has done impressively well already. With an over 50% YTD return, the AAIP is well outpacing all major U.S. indexes and we see no reason to begin giving these gains away under a shaky macro backdrop.
3. Finally, the current value environment is simply soft. Yes, value investing always wins in the long term, but for right now the value space seems to be exhausted and at the same time filled with elevated risks. Many names in the space are value traps and despite strong past results, the uncertainty surrounding the future of the economy is enough to be skeptical regarding whether or not these past trends will be reflective of future performance.

Bottom line here is that we are simply content with our positioning for now and are constantly looking for portfolio adjustments... just not seeing any moves that need to be forced at the present time.

Moving forward we will be covering two things over our next few weekly pieces:

1. We will go through a value investigation into a potential addition to the AAIP step by step, allowing readers to see how the value education and processes we have described with Andy's Angle can be applied.
2. We have begun working on a filter tool that will allow readers to have access to a custom value stock screener that uses all metrics that we use in our stock picking method. With this tool readers will eventually be able to plug in ticker names and see how they rank on our value investing scale, as well as a potential price range for stocks that may fit into the value investing criteria.

This is what the future of Andy's Angle has always looked like, and while we are proud of the progress made so far from being just a newsletter to now being an actively managed investing portfolio, we want to take Andy's Angle to the point where it is an essential tool in a value investor's toolkit.

Updates on this new feature will be given periodically, but we hope to launch a beta version before the end of the year.

In the meantime our once/twice a week market updates and stock analysis will continue as normal.

Lastly, we are open to any suggestions regarding what is featured in our new screener feature and anything else that readers would like to see be included into this product.

-Andy's Angle Writing Team-