My Performance recap (Benchmark: S&P 500)
- 2021: -36% (+27%)
- 2022: -76% (-19%)
- 2023: +80% (+24%)
- 2024: +104% (+23%)
- 2025 through Aug 1: +62% (+6%)
Current portfolio holdings:
- HIMS - 17%
- SEZL - 14%
- RDDT - 10%
- ALAB - 8%
- CRDO - 8%
- DCTH - 7%
- NVDA - 7%
- TARS - 7%
- CRMD - 7%
- UPST - 6%
- ETON - 5%
- HIT - 4%
Portfolio is currently 100% long and has 12 positions.
Please note, I am now starting to sell calls and puts to generate cash for my portfolio. This, if goes well, will contribute to 1-2% performance a month. I will not include them in the holdings but my overall returns will reflect their impact.
Changes this month
- New Starter Position:
- HIT: Health in Tech is a unique tiny business brought to our attention by @wpr101. As others, I am very impressed by the quality of businesses he finds and shares with the community.
- Sold:
- TGTX
- I still like TG Therapeutics. I just the others I own better. I got out mainly because of valuation and it still being a FCF negative business. They are going after revenue expansion and will stay FCF negative for a bit. I usually like businesses that are doing both. Hence, the exit.
- TGTX
- Bumped:
- CRMD
- Still building out my Tier 2 position in this business.
- DCTH
- After a very good earnings last quarter, this thing has given everything back. I like the name still, hence added one last time to it before earnings season.
- RDDT
- Reddit had a lot of consolidation and I was underweight this name given it is a Tier 1 holding. So bumped up to at least get into the range.
- CRMD
- Trimmed:
- NVDA
- On hindsight, probably should not have trimmed. It has really run up a lot especially being a large cap, hence I went trigger happy. Instant regret!
- HIMS
- HIMS now has come down to Tier 2 conviction for me. I still have a pretty significant exposure but will slowly wind this down to around 10-12% holding size.
- NVDA
My holdings - historical view:
My methodology current scores:
Here’s the formula:
(NTM Growth + FCF - Dilution) * (GM + ((1-GM)/2))
All green bars I own
My holdings on my quality to valuation matrix:
My Quality vs. Value scores:
This is an experimental chart. This plots My Methodology quality score against the valuation score I use. The idea is the higher the score in this matrix the bigger the outperformance opportunity.
Here is the formula I use for Quality / ValueL
(NTM Growth + FCF - Dilution) * (GM + ((1-GM)/2))
divided by
(EV/GP/NTM Growth)
Now of course this comes with all sorts of caveats. Doesn’t matter how high the score, I still need to like the business before investing in it. For example, GAMB and EVER has high scores but I don’t invest in them. For EVER it’s lower than quality score of 30, so it’s a low quality business as per my metrics. And for GAMB, they had two “ok” quarters and analyst trend is not great, also growth is projected to fall below 40%. Hence I stay away. Again, this is just another way to look at if the business needs to be looked at more closely.
My Current Tiers:
Tier 1: (15% allocation)
- NVDA, SEZL, RDDT
Tier 2: (10% allocation)
- HIMS, CRMD, CRDO, TARS, UPST, DCTH, ETON
Tier 3: (5% allocation)
- ALAB, HIT
Why I own what I own:
- HIMS - 17%
- As Novo Nordisk earnings and guidance has gone down the drain, HIMS is literally eating their lunch. I have no doubt they will beat sales estimates.
- For me, it all comes down to guidance. What I do want to see from HIMS is a raise in guide next quarter. Otherwise, the high growth part might be wobbling a bit. It did not raise guide last quarter and the overhang of lawsuits and settlements, things may get murky a bit. HIMS has done nothing but beat every quarterly earnings, so I will give it the benefit of doubt. If it just hits the numbers and does not raise, it might still be good for a Tier 2, just not a Tier 1 anymore.
- If it does raise guide, watch out. It’s not cheap but it’s trading at 9 times sales with 60%+ revenue growth and 13% FCF. This might easily touch $100 over the next month on a beat and raise.
- SEZL - 14%
- I am happy Sezzle is not going into earnings red hot. This pullback has been much needed. It can still fall on good earnings but I think Sezzle crushes again. You just don’t go from a 60%+ revenue beat to a tiny beat.
- Also fundamentally we are seeing rising consumer adoption, higher transaction volumes, and merchant integrations across the board. This is a high tide situation for the industry and Sezzle is really well positioned to continue grabbing a chunk of market share.
- RDDT - 10%
- Reddit reported yesterday some stelar numbers. Numbers wise, this has a lot of legs. And product wise, I think they are just starting to get going. They have AI gold in terms of actual user insights that everyone wants access to. There are so many use cases for their data.
- I think we will see their per advertiser spend keep going up and they will have a lot of partnerships coming as the LLMs line up for the vast, diverse, and unstructured dataset. What makes them special is it’s the best user generated content among social platforms. Maybe X comes close. But who else have real time insights on absolutely the entirety of questions that can be asked by users. It’s still only a 34B business. You can easily make the case in the AI driven data world, this can 10x if not more.
- ALAB - 8%
- ALAB is solving the AI infrastructure bottleneck issues. They have partnerships with all the big players and has the first mover advantage. With the capex exploding for big players, ALAB is very well positioned to take advantage of this trend.
- It is not cheap but the leading trend of it’s day is rarely cheap. If it delivers a blowout quarter and improves it’s cash flow, I would be mighty happy with that.
- CRDO -8%
- Credo has been performing great in terms of numbers. And the market tailwind of AI has helped the stock triple since April lows. Of course the 86% revenue from AWS is not ideal at all. But I would rather follow the numbers and see if they can bring in some more new hyper scalers over the next few quarters. If they keep beating and raising, I will more likely hold on to them than ding them for over reliance on single source of income.
- DCTH - 7%
- Delcath had a terrible month in terms of price action. But there was not much news. So I continue to add to my position as I think they should have a great upcoming quarter.
- If the market knows more than I think if Delcath, I will gladly take the verdict and deploy capital elsewhere but until I see a deterioration of numbers, I will stick to this being a tier 2 holding.
- NVDA - 7%
- Nothing new to say on Nvidia. The giant finally woke up and decided to run after a year of consolidation. All the capex increase for hyper scalers have already tipped the hand that Nvidia should do well. So for now I am just gonna hold of to the current position sizing and will add on good opportunity.
- TARS - 7%
- The base for Tarsus now is almost 10 months long. More consolidation this month for TARS. Nothing has changed in this story so I continue to wait for the breakout.
- CRMD - 7%
- Added a bit more to this holding as last quarter was stelar. These med tech product launches usually is not a one quarter affair and done. They usually have legs once they get going. Hoping CorMedix falls in that camp. Earnings next week, will have a much better picture and decide if this is going to continue to be a Tier 2 or get bumped lower.
- UPST - 6%
- As I wrote in my last update, Upstart felt like it’s starting to run. The business have turned the corner and as long as the economy holds up, Upstart should put up some good numbers. I expect them to beat and raise. It’s still relatively priced so a good raise should send the stock higher.
- Their AI models are working and that is proven by the fact that their model approves up to three times more borrowers at the same loss rates compared to traditional models, with a 30% lower default rate
- ETON - 5%
- ETON has a very unique value proposition. They focus on Rare Diseases and Underserved Populations. Eton leverages the FDA’s 505(b)(2) pathway, which allows for faster and less costly development by using existing data from approved drugs. Their key secret sauce is speed to market and their ability to acquire orphan drugs.
- So far they have done very well with 2025 acquisitions. I am hoping to see more names in the pipeline and profitable growth moving through next 12 months.
- Even after a massive run, the stock looks reasonably priced. Hoping for a blowout quarter.
- HIT - 4%
- Once I ran the numbers for HIT, it came out as a top 5 methodology score. So it was a no brainer for me - especially when I saw the valuation.
- I really like that they are a AI driven platform play and has incredible speed compared to it’s legacy competitors.
- Again, I big thank you to @wpr101 for discovering this business. I continue to learn more about them and hence it’s just a starter position.
Wrapping Up
July was a good month with 10%+ returns compared to 2% on the indexes. A lot of my top names ran and helped the cause. Most of my performance this year has come from the AI, BNPL RDDT, UPST positions. The healthcare part of my portfolio barring HIMS have been pretty dormant. In fact, it is pulling the overall performance down. I think the second half of the year should help these stocks such as DCTH, TARS, CRMD, ETON run. Of course they still need to perform. If this part can move as well, I think there is a chance of acceleration in my portfolio. All theory, time will tell.
Next week 8 of the 12 businesses I own report. So next month’s update will be more meaningful.
Always a privilege to contribute here. Thank you for reading. Cheers!
Verdict & What Could Drive Pullbacks