Portfolio update
The fund returned +7.6% in October. Strong performances from Carvana (CVNA), Pinduoduo (PDD), and PointsBet outweighed continued falls in US software and more popular 'growth' stocks, with many of them 30-40% below recent highs.
Liquidations like this, where high momentum stocks sharply reverse, generally involve extraordinarily large moves from the highs to the lows (see Q418), but the opportunity to make decisive investments is often fleeting.
This happens every year or two, sometimes in different sectors, sometimes across the whole market. Taking the other side of these moves is not for the fainthearted,