Excess Returns

Opportunistic Trading Adjustments During Volatile Events

"When GameStop was going crazy, we were short it at 27. We were short it again. We covered for a loss. We short it again at, I don't know, 40 or something. I forget the number. And then short it again at 67. We took loss, loss, loss. Then we were long it above 67 and we wrote it to 480 or something like that."

Noel provides a retrospective look at their opportunistic trading during the GameStop frenzy. He describes how the team managed rapidly changing positions by shifting from short to long positions as the situation evolved. The commentary highlights the critical need for flexibility and the willingness to change strategy when mistakes are made, reinforcing that no position should be treated as permanent. This serves as an important lesson for managing risk amid extreme market volatility.

Bullish Commentary on AOT Growth and Innovation ETF (AOTG)

+1.02%current return

"So that's how you invest at AOT Invest and specifically the AOT Growth and Innovation ETF that you run, ticker symbol AOTG. And now I think it traded in the 55s today. So the average weighted earnings growth in AOTG the last time I looked was 85 percent year over year, which is dramatically higher than the roughly 5 percent seen in the S&P 500."

The speaker provides a detailed commentary on the AOT Growth and Innovation ETF (AOTG), emphasizing its focus on low marginal cost companies that deliver scalable, high earnings growth. The ETF is designed to capture a niche of fast-growing, profitable tech companies and has demonstrated strong historical performance. This commentary offers investor insight into why such an ETF, with a reported high earnings growth of 85% year over year, can be an attractive option for long-term growth investors.

Sell Palantir Due to Elevated Valuations

-3.07%current return

"So I took Palantir out of the portfolio, right? I mean, I think that like you need to hold the price to sales constant, but when you see stuff like at a hundred or even 50, you think like that's going to be hard to get a good return over the next three years."

The speaker explicitly mentioned removing Palantir (ticker PLTR) from the portfolio primarily due to its elevated price-to-sales ratio. The rationale centers on the importance of maintaining valuation discipline within a growth portfolio that is built on low marginal cost fundamentals. By trading off high-growth companies that maintain low marginal cost and strong earnings expansion, the manager rebalances the portfolio to optimize long-term performance.

CIBC Options Trade to Exploit Vulnerabilities in the Canadian Housing Market

"But a lot of the mortgage experts feel like CIBC's portfolio is the most vulnerable. So what I'll do with a trade like this is like take a shot. I'll buy, like, say, I think the CIBC options that I would look at were like in October or some October 17th or something."

Donnelly identifies an inflection point in the overextended Canadian housing market due to rising unemployment and an oversold housing bubble. He specifically singles out CIBC as the poster child for vulnerable mortgage portfolios and recommends a short-term options play on CIBC, suggesting an entry around mid-October. The trade is based on quantitative assessments of market weakness and sector-specific catalysts, offering a concrete actionable bet.