As of mid-June, Northshore Wealth Management’s flagship portfolio model, The Mainsail Equity Model, is up 11.19% year-to-date as a whole. The cash position itself has achieved a 19.6% compounded growth rate year-to-date by navigating through fluctuations in the model’s positions. The cash, which is less than 10% of the model, takes its gains and moves on to the next opportunity. Mainsail is currently actively searching for the next opportunity. It’s an actively managed allocation model with a buy-and-hold growth strategy, focusing on fundamental analysis and supplementing its returns through active trading based on technical analysis.

On May 5^th, the Mainsail Equity Model deployed cash to capitalize on the price dip in AAPL shares. Those shares have only gained 1.8%, but we no longer see a reason to hold an overweight position in AAPL. The rest of the long-term APPL position remains in the model. Cash has been restored for the next opportunity.

In addition to trimming Apple, we’ve closed our position in Nintendo. As announced earlier in the year, we never intended to hold Nintendo long-term; it was a rare, short-term opportunity to capitalize on the release of a new gaming console this year. Year-to-date, Nintendo’s share price has risen 46%, and its financials have shifted to levels outside our fundamental thresholds. We can’t possibly know what the stock will do next, but we simply stick to our rules. Nintendo’s share price may continue to rise, just like any of the thousands of other stock positions not included in our model. Mainsail looks past FOMO and remains a focused strategy.

An inevitable byproduct of a growth stock portfolio model is volatility. We can’t predict what the market will do, but we can always bet on volatility. When something is that reliable, you might as well find a way to make use of it. That’s what the Mainsail equity model is designed to do. When the winds change, we adjust the sail to take advantage of the prevailing weather conditions. Conditions have been rough, and we simply captured the wind. It might have felt like a hurricane, but we’re tough, and we stayed on course.

By ‘hurricane,’ I mean that some of the drawdowns our stock positions experienced were significant. This strategy isn’t for weak stomachs. However, our investors understand how growth opportunities in the stock market come with the risk of volatility.

Here’s a chart of the S&P 500’s 1-year performance. Think of yourself as a hiker on a challenging trail. Imagine your goal is to gain elevation. Growth stocks are mountainous terrain. Sometimes, you have to traverse valleys and ravines to get to the next peak. Consider all the valleys behind you and consider all of the valleys that lie ahead between you and the peaks in the distance.

We’re halfway through the year, and no one knows what the rest of this year holds, but it’s always safe to bet on volatility. That’s why the Mainsail strategically holds a bit of cash. Not to hedge against a dip but to capitalize on it.

Of course, if elevation gain isn’t your goal, there’s always flat terrain, and we can offer less volatile investment strategies for investors seeking to manage spikes in their blood pressure if those inversely correlate with dips on the stock charts. The goal is to live long and live well, and what’s the point of a growth strategy if the stress of it is shortening your life? You must do what is right for you, and I can help.

Live long and live well,

Alyse