Despite the many warning signs at the end of April, the markets continued their upward trajectory. At -5%, the STOXX500 is still not near break-even point but the S&P500 was able to finish at +3% YTD. Our European portfolio finished the month at +1.8% but our US portfolio moved in the other direction and is now at -4.2%.
The European portfolio continues to outperform, posting a 6 year return of +313% compared to the STOXX600s +39%. The chart above shows the TWR over time (blue line), the STOXX600 return (red line) and the alpha (yellow line: 275!). The average return for the current 26 positions held is +47% and for the 90 positions sold it’s +43%.
We originally launched the newsletter to create proof that our screener works in practice and I think the evidence is quite clear. Our European model just works!