Speculative Portfolio Update

A classic saying goes, in an efficient market, no one should be able to beat market returns over an extended period of time.

Well, we are closing in on our second full year of operation here at Andy's Angle, and the results speak for themselves...

We'll have a full portfolio review and extensive educational pieces in our December annual letter, with our flagship "value" portfolio extending two year cumulative gains to over 150%, but today's focus is on our speculative division, which itself is up an impressive 90% since its inception just about a year ago.

It's easy to say, no one does it better than us here at AA, and we are excited to grow our family and continue providing market-shattering results.

Let's dive into our portfolio updates...

Over the last year and 90% of returns, there were three superstar picks within this segment.

• Gannett Inc. ($GCI): By far our best pick, not only in the speculative segment, but firm-wide, as we realized a nearly 100% return over a six month span, with Gannett continuing to run after our exit, displaying our superior ability to identify undervalued stocks and capitalize through excellent portfolio management and execution. The original Gannett thesis from our $1.85 initiation has now been made public, to give an insight into how we operate the speculative segment, it can be found here.
• Largo Inc. ($LGO): Largo was another rockstar pick, and one that comes from a very different angle than Gannett did before it. The full thesis from our original entry has also been made public, found here, where you will see that while Gannett was tackled from a value-speculative blend, Largo was taken on as a full on speculative bet on an expanding industry.
  • An important update on our Largo holding, we have closed out our position at $2.17/share over the last two days, representing a 41% profit from our $1.54 entry. We decided to close out this position despite its immense upside position due to the risks faced by both the renewables and electric vehicle industries as a result of new Trump-era regulations. Largo still remains at the top of our list and will be one to watch for re-entry moving forward.
• Nu Skin Enterprises ($NUS): Finally, we land on our most recent speculative pick, Nu Skin. Despite being only about a month old, our position here has appreciated 24%, once again displaying the unmatched excellence that we provide at Andy's Angle, and we expect more to come. Our full thesis is available here for paid members.

With that laid out, we now continue to hold our $NUS position, representing about a 63% allocation within our portfolio, with the rest being cash.

You know what that means...

We will be looking for a new home for that cash in the coming days, with a new winning speculative pick hopefully to be initiated before the year is up.

Well, that wraps up our review of the speculative portfolio, I would just like to give a few comments on my view on the speculative market and what we should expect going forward.

Overall market conditions have improved, especially amongst small caps, where most of our spec plays originate. As we continue to move into a period with lower interest rates, a steady economy and controlled inflation, we are starting to see reason to believe that we are entering a "goldilocks period" for both speculative as well as value stocks.

Financial markets are entering a period in which risk is uncharacteristically low, and despite the entrance of a new administration, we anticipate these conditions to persist.

As we said earlier we will have a full firm-wide portfolio review and full market commentary out in our annual letter next month, in addition to this we are looking forward to announcing new additions to the Andy's Angle portfolio of products, including an entry into the options trading space with the addition of two new contributors to the Andy's Angle team, as well as a live trading room for those interested in more acutely managed trades on top of our sweeping portfolio gains.

As usual, look forward to seeing you all very soon with some major updates.

Happy thanksgiving to all in the Andy's Angle family. Stay safe.

-Andy