Nervokid Portfolio Update - October 2021

Here’s my monthly portfolio update for the month of OCTOBER 2021

Good month. Portfolio peaked at +105% ytd when Upstart had its run up to the $400 region, cooling down a bit afterwards. Cloudflare is also having an incredible run. Whew.

I’m still in awe of how all this is working out (I thought I’d be happy with ~15% yearly results). Who knows, might make that down payment on a house sooner than I was expecting!

OCTOBER BUYS
Added a little bit to Datadog and fuboTV.
Increased the number of Upstart shares in the portfolio 60%, at various price points (15 separate purchases).

OCTOBER SALES
Oh boy. Did a lot of pruning to find capital for more Upstart.

Reduced Voyager Digital to half of what I was holding (in hindsight, worst possible time to do it, went up 40% the day after I sold, and more today after they posted their FY results).

Trimmed Cloudflare, Crowdstrike, Magnite somewhat.

Sold Confluent, Lightspeed, Global-E Online, all recent starter positions. Couldn’t find the time nor the inclination to research these further so far, so conviction was totally off, and it was bothering me to own companies I don’t really know, thought it best to just hang onto what I’ve looked into.

Sold Palantir. I’d cut it down a lot a couple of months ago, with a mind to rebuild it, but got tired of it, accepting it might be a good company, but right now at least it’s not a great stock. Moved the money into Upstart.

THE COMPANIES

Upstart, Cloudflare, Crowdstrike and Datadog have been discussed to death here (I’m not complaining – thank you all who contribute!). I’ve nothing to add today, except that nothing I’ve seen this month has damaged my conviction in these companies. In fact, most of the news, such as the product announcements from Cloudflare and Datadog, or Upstart expanding their workforce and releasing Auto ahead of time, just reinforced the investment theses. Looking forward to the confirmation of our collective expectations in the earnings calls in the upcoming weeks.

fuboTV , the live sports streaming service, report Nov 9th, expecting most of all to see some hints of how the wagering product is beginning to work for them.

Magnite report Nov 3rd. This is the position where I have the least conviction. I’m thinking of holding most of it for now and wait until their Q4 report at least, to see how the CTV story is developing, but it also might go on the chopping block soon.

Voyager Digital reported today on their Q4 and full year results, even though their FY ended all the way back in June 30th. So they’re about to report Q1 in a couple of weeks already. Anyway, YoY revenue growth was ~20,000% (yes, 200x their previous year, $859k vs $175M). Q1 this year will see a bit of a slump, as Voyager are a crypto broker and over the Summer crypto was down, but on the Q1 call in 2 weeks they should also provide some guidance for Q2 that ends December 31st, and Bitcoin, Ethereum etc saw all time highs this quarter, sparking lots of trades, so their numbers should improve again. The real catalyst I’m waiting for is the uplisting to Nasdaq, though, which should come in 2022.

I don’t usually talk about Voyager at all here as I fear they might currently be off topic, but there are announced plans for them to add regular broker functionality to the app as well, making their service more similar to Robinhood and other names that have been discussed on the board, so just thought I’d dedicate some words to them this month. Also, Beth Kindig has publically compared them to Coinbase a few times saying she likes this one better. Any questions or comments about Voyager, please do it off-board.

COMPANY STOCK EVOLUTION YTD

For positions started this year, starting price is where I first bought it.
For companies I was already holding in December, starting price is Dec 31 Close.


 **Price 10/29	Starting	Growth**
UPST	322.04	        87.4	       268.5%
NET	194.72	        75.99	       156.2%
DDOG	167.12	        98.44	        69.8%
UCD2	13.6	         8.89	        53.0%
CRWD	281.8	       211.82	        33.0%
FUBO	29.81	        28	         6.5%
MGNI	27.04	        30.71          -12.0%

PORTFOLIO RESULTS YEAR TO DATE

End of Jan +24.7%
End of Feb +14%
End of Mar -6.9%
End of Apr +0.5%
End of May +6.23%
End of June +29.66%
End of July +30.91%
End of August +56.2%
End of September +73.9%
End of October +96.62%

CURRENT POSITIONS:

			

**Company	        Ticker	% October	% September**
Upstart	       UPST	 61.1%	          48.1%
Cloudflare     NET	 11.5%	          10.3%
Datadog	       DDOG	 8.7%	           8.6%
Voyager D      UCD2	 7.5%	           7.8%
Crowdstrike    CRWD	 6.7%	          11.9%
fuboTV	       FUBO	 3.2%	           2.9%
Magnite	       MGNI	 1.3%	           2.6%
Lightspeed     LSPD	  -	           2.9%
Palantir       PLTR	  - 	           2.8%
Global-e O     GLBE	  -	           1.3%
Confluent      CFLT 	  -	           0.9%
Cash	                 0.0%	           0.0%

So, a huge position in Upstart (I believe I’ll stop buying now), 4 good size positions in Cloudflare, Datadog, Voyager and Crowdstrike (looking to add), and a couple of “let’s see what happens” with fuboTV and Magnite.

Good luck to all!

Previous recaps:
September 2021 Update:
https://discussion.fool.com/nervokid-portfolio-update-september-…
August 2021 Update:
https://discussion.fool.com/nervokid-portfolio-update-august-202…
July 2021 Update:
https://discussion.fool.com/nervokid-portfolio-update-july-2021-…

Cheers,

  • Luis
68 Likes

Thank you for your portfolio update. When I saw the 60% allocation in one position I felt obligated to make a comment here, especially knowing the board is now much more popular and with a lot of new investors coming in.

I would not advise anyone to hold 60% of their portfolio in one position, regardless of our conviction. I’ve seen folks here with much more experience holding large positions, but 60% is in my opinion gambling and not investing. Upstart might be great company, but with any investments, especially with newer IPOs the risks are there and especially with Upstart the same risks presented several months ago are still in place - especially the risk from CreditKarma which generates about 50% of their traffic.

63 Likes