Elazar Advisors, LLC March Performance Review: +3.1% Versus QQQ -9.1%
We were up 3.1% in March versus the NASDAQ QQQ down 9.1%. Year-to-date we're up 6.6% versus the QQQ down 13.2%.
We managed to get short ETFs and exit most of our longs in late February / early March on the first break of the market at SPY 331 which we pointed out publicly. At one point we were left with only one position of 1% long in the down move. We were also able to catch a couple of market bounces this month.
In my career I found that if we think it's going to be a sharp break it's better to clear out of the longs because they can go down more than the shorts. Someone who holds on to the longs in that first break, even if their net exposure is correct, can sometimes get disappointed not to get paid on the right call as the longs go down more than the shorts. That's why I prefer to clear out.
When I saw such a sharp first break of that SPY level 331 it gave me confidence that this move could last for a while and sharp. Oh my.
On the long side we had nice wins in Slack (WORK), Zoom (ZM), Take-Two (TTWO), and Netflix (NFLX) even with the market getting clobbered.
We exited and avoided many of the longs we had that got hit. When assessing that our earnings were likely not going to match up with our previous estimates there was no longer reason to keep them as Strong Buy Ratings.
Part of our process that needs simple criteria to be a Strong Buy Rating allows us a somewhat mechanical less-emotional flexibility to let the market and fundamentals dictate our positioning.
When those criteria are there, great, let's go. But when they change to no longer be there, watch out and get out.
Removing emotion and sticking to a cookie cutter process allows us not to get carried away with the media or natural emotional portfolio pressures and hopefully make better decisions.
Wishing everybody a lot of success in April and the years to come.
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