I will be doing a slightly early version of the portfolio review for the entire of 2021 since today is a public holiday and I’ve got to go back to the office starting tomorrow to catch up on some end year work.
There is still a few days left this week to the end of the week but I am likely to take no further positions other than a few options I have left outstanding which will expire by the end of this week.
I started the year with about 23% of HK/China weightage holdings and ended the year with about 97% of my entire portfolio in either HK/China stocks. If you include the leverage portion, it’s probably closer to 130%.
This is a year where the China regulatory impact takes headline and impacted over many Chinese stocks. I was originally not too interested in many of these stocks as their valuations were not attractive but after some beatings, I started to enter the market a lot more since April and May onwards.
Things continue to go downhill as sentiments are severely damaged while we cannot ascertain for sure if fundamentals can return to where they are before the regulatory takes place. One thing I am more certain is I think the share price has taken a beating much more than the fundamental impact of their businesses and this is where many other investors, myself included find value in the price-fundamental mismatch.
I kept averaging down with my proceeds from options, dividends and also monthly injection from my salary – to the point I am getting a good amount of traction in vested position in the top few positions.
This is the consolidated statement report I have pulled from my Tiger Brokerage.
Most of my positions in HK and US (other than SG) have been bought using the Tiger Brokerage so this gives me a quick snapshot of how I am doing for the year.
The time weighted return for the portfolio is at -6.83% for the 12 months period (excluding the last few days).
For those who are not aware, the time weighted rate of return is a measure of the compound rate of growth in a portfolio.
The time-weighted return breaks up the return on an investment portfolio into separate intervals based on whether funds was added or withdrawn. The TWR provides the rate of return for each sub-period or interval that had cash flow changes. By isolating the returns that had cash flow changes, the result is more accurate than simply taking the beginning balance and ending balance of the time invested in a fund. The time-weighted return multiplies the returns for each sub-period or holding-period, which links them together showing how the returns are compounded over time (Source: Investopedia).
Based on the net worth portfolio published a few weeks ago, the portfolio ended the year at ~ $480k. If we exclude the additional $135k of emergency savings injection, the portfolio would have closed at $345k, which is almost flat from where it started back in Jan.
This is despite the regular monthly injection from salary (50%), dividend (5%) and options (45%) which amounted slightly more than $100k.
Most of these options are short-term duration for either puts or calls and they are mostly US stocks in nature.
I am cautiously bullish going into 2022 with all the current positions already heavily battered this year.
With the US starting to adjust for interest rate, we could be in for a harsh winter correction which might once again impact the overall market. I’ll be keeping most of my strategies relatively the same for next year and see how this pans out over time.
Wishing all readers a Merry Xmas and Happy New Year going into 2022!
11 thoughts on “3Fs Portfolio Review – 2021”
Happy New Year to you too. Thanks for sharing your views. It will be really helpful.
Happy New Year to you too.
Why not just use XIRR?
You can and you should if you’re tracking it off yourself.
I am just lazy so I just pulled the information based on the brokerage statement I’ve been using and they only showed TWR there.
I am confused at how the return calculation works. In my simple mind, you started the year at $322K and injected $135K emergency funds and $100K from salary, dividends and options. So total if everything was kept in cash instead would have been $577K, even assuming zero interest.
Instead, you are ending the year at $480K or $77K loss which is 13.3% of $577K. That is a big difference from the 6.1% time weighted loss.
Sorry, there was a typo it is $557K if kept in cash and so 13.8% loss.
Yes from a XIRR point of view, the loss is more or less at that amount. TWR takes into difference the timing of those injections and losses along the way so XIRR would be a more accurate form of tracking returns when you look at it across the full year lenscape. If you are looking at it halfway throughout the year, TWR would be more reflective of the situation.
Wishing you a happy and prosperous new year! May 2022 be a good year for your portfolio! Look forward to your fantastic sharing on China tech stocks.
Happy New Year to you too Gerald and may 2022 be better for us all.
Just want to thank you for your candidness in sharing your portfolio.
It takes strength to plow through the chinese tech clampdown.
Thank you Jason and may 2022 be better ahead for all of us 🙂
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