Nostromo Strategy Q1 Results
Returns: -2.68%
Nostromo started 2022 primarily allocated to value stocks and looking to increase holdings in energy and commodity related names.
That trade "got away" as the war in Ukraine saw these names surge higher and become too speculative for this precise strategy. After initially shedding exposure to risk assets and long-term bonds in January, Nostromo made an attempt at a rebound using the Dow-Jones linked DJI ETF, as well as RSP (equally-weighted S&P 500). The gains proved elusive in the short term and positions eventually got stopped out.
Nostromo enters Q2 with a 100% CASH allocation and is looking to increase holdings in defensive-oriented names (such as Utilities and Consumer Staples). We'll probably get these trades if the current rally consolidates without breaking support.
The charts below show the results of the strategy since January 2007, in order to put the current performance into perspective. Q1 equity curve is highlighted.
