Upsidedown's January 2021 update

End of January 2021 return +7.91%


Stock	Jan	Dec	1st Buy
CRWD	10.36%	10.97%	2/25/2020
SE	9.10%	9.02%	2/19/2020
TDOC	7.76%	6.47%	1/22/2019
TWLO	7.12%	7.23%	11/26/2019
ROKU	7.00%	6.88%	10/15/2019
SQ	6.48%	7.04%	9/20/2019
PTON	5.65%	6.32%	6/18/2020
MELI	5.34%	5.42%	2/28/2020
SHOP	5.27%	5.86%	11/26/2019
DOCU	5.16%	5.04%	11/4/2019
ETSY	4.78%	5.99%	5/28/2020
PINS	4.52%	3.41%	12/8/2020
DDOG	4.50%	4.46%	5/27/2020
FTCH	4.33%	4.87%	10/21/2020
SKLZ	3.31%	1.55%	10/1/2020
ZM	3.03%	1.35%	6/2/2020
OKTA	2.18%		1/5/2021
CURI	1.88%		1/4/2021
IPOE	1.35%		1/27/2021
SNOW	0.82%		1/6/2021

This would be my first full year of measuring my performance and trying to follow a defined process. Thank you once again for all the wonderful leaders of this board that pave the way on how to go about it.

In comparison this month: S&P -1.01%, QQQ +0.26, IGV -1.37%%, ARKK +10.45%. So better than the broader standard market indices and IGV which is a tech focused ETF, but lagging ARK tech ETF.

I purposefully stayed around 20 positions as given all the appreciation that happened in 2020 for a lot of our companies, I’m not sure how they will fare going forward and am still working on building conviction for more concentrated portfolio.

I hope to consolidate into 15-18 positions as we get into earnings.

New Positions

OKTA – Was looking for another cyber security company besides CRWD in my portfolio, especially after the SolarWinds hacking news in December. OKTA as a company always seem to stay calm and collected plus I see their a product as a must have for every enterprise along with CRWD, ZS. They probably need to up their product innovation cadence to match the price appreciation that NET and CRWD experienced in recent months.

CURI – Curiosity Stream is a recent SPAC that completed merger in December. They are an online on-demand non-fiction streaming services provider. They provide documentaries and series about science, technology, history and nature. They distinguish themselves into a “Factual” content category as compared to “Movies & Scripted series” from Prime Video/HBOmax/Peacock, General TV Entertainment from Hulu and Sports from FUBO, ESPN etc.
It was founded in 2015 by John Hendricks who was also the founder and ex-CEO of the company that owns Discovery Channel, Animal Planet. Clint Stinchcomb, also an ex-Discover exec is their current CEO.
Their current Market Cap ~700B, grew 82% last quarter of a small revenue base. They are projecting for a growth at 119% y/y in 2020 and 80% in 2021. However, their current operating margin is -77% so I plan to keep it a small <2% position until their ER.
I exited out my initial position in December but was looking for further Ad Tech, Streaming exposure in my portfolio besides Roku that hasn’t already experienced a 2020 bump, so re-entered in Jan.

IPOE – SPAC for SoFi, a financial services company that aspires to become a super-app with banking, lending, mortgage, trading platforms. However, their growth pre-covid tapered from 87% to 38%(2020 expected) even with an acquisition of a Plaid like product called Galileo. I personally have come across them a few times in the past but their rates were always worse than other traditional routes. Their current products seem to me like old wine in a new bottle, but I see potential in their packaging with their target customer cohorts (millennials) and if at some point they can get a bank charter, they may improve their margins and funnel those customers into other products and improve their overall metrics.

SNOW – I exited right after their Q3 thinking it wasn’t good enough for their valuation but for some reason market appeared to like the results and rode it up to $400+ before tracing it back to where it is now. So am back to building position in it as I believe data warehouse/analytics in cloud is still an evolving industry and Snowflake may be positioned aptly for that. Will go slow on adding given their valuation.

Sold out Positions

EXPI –Even with low gross margins, I like their place in the Real Estate stack. However, I wasn’t too comfortable building a position in a cyclical sector and besides the low interest rate environment I wondered if economy is really that strong for a continued upbeat in Real Estate sector. And then they announced stock split and their stock price continued to run. So as usual another stock that runs off after I sell. Anyhow, I would have found it difficult to find a place in my portfolio and hold long term give my conviction levels.

AFTPY – There is a lot of activity in the BNPL space and they seem to be the established leader but got out of them to make room for SoFi and also I found it difficult to dig information on them as they report on a half yearly basis.

GDRX – Profitable and poised for resuming their >40% growth in a post Vaccine world. Digized here has it well covered and I feel upbeat about them as well. TDOC hasn’t moved since LVGO merger (until a week ago) so got out of GDRX to add to TDOC.

OZON – A Russian company that appears to be well positioned to tap into secular Ecommerce trends, but I figured I better stay with the companies that are easier to keep track of and find information on.

Rest all are same positions carried over from last month, a few adjustments here and there when I got antsy to do something looking at market volatility this month but nothing major.

December 2020 review -…