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Performance update — Oct. 2020

Last month, there was no middle ground. Winners really won and losers really lost.

Despite the volatility created by the market’s reaction to the US presidential elections, Rise stocks portfolio outperformed S&P 500 in October, with our performance for the month coming in at 4.29% vs 3.48% for S&P 500 in the same period. However, there was a lot of disparity in the performance of various stocks in our markets portfolio with the gainers up by a lot and our losers down by the same measure.

Here are the best and worst performers for the month of October.

Winners

  • Match.com (MTCH) – 16.96%
  • Upwork – 51.91%
  • TradeDesk – 20.02%
  • AB InBev – 22.03%
  • Adient – 26.31%

Most of our winners benefitted from a few trends including beaten-down stocks that reported solid revenue and profit numbers which provided a boost; strong companies benefitting from the continued shift towards online and remote work; and an improving macroeconomic outlook given the prospect of vaccines becoming available.

One of our favourite stocks and the best performer this month, Upwork, has continued to grow tremendously month on month as the market is catching up to its relatively lower valuation compared to their close competitor, Fiverr. We expect valuations for our top stocks to continue to grow into the year-end.

Losers

  • Fastly -14.96%
  • Alibaba -13.8%
  • Crowdstrike -10.54%
  • Wayfair – 21.3%
  • Shopify -15.44%

Majority of our losers are strong long term investments who faced market correction after running up so much. However, Alibaba faces more structural headwinds given its cancelled ANT Financial IPO, some challenges with the pandemic, and competition from JD.com, PDD and co. However, we continue to monitor their long term outlook and update our portfolio accordingly.

That’s our update for the past month and we hope to share more after this month. Rise always focuses on the long term and we will navigate market complexity to deliver outperformance for you. Start investing at www.rise.capital

Disclaimer: Rise Vest Technologies Limited and all of its subsidiaries are sharing this update for educational reasons only. Nothing in this update can be regarded as investment advice. Past performance is no guarantee of future results and all investments carry some risk. Investments are held by regulated partners in the relevant jurisdictions.

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