Portfolio Review
A look at every holding amid Q2 earnings season and Fed uncertainty, plus our current shortlist
Q2 2026 earnings season is kicking off.
Expectations are at all-time highs for most sectors while a rate hike is looming over the markets.
We’ve recently removed and added a few companies from the portfolio (we comment regularly in the Substack chat) to be well positioned for the season.
A reminder of our philosophy; we do not hold any “old stocks” that have run up too far or where the thesis is no longer intact. If we did, we would have exited and communicated it. Every company we hold is one we would buy today, making the portfolio a collection of high-conviction ideas.
We invest in companies with long-term merits: quality business, good management, and long-term trends or themes supporting the company. However, we do enter and exit more frequently to capture short-term returns.
With 19 companies, we focus on value-add information. For stocks we added longer ago, you’ll know why we still like the stock despite an increase/decrease. Links to the full in-depth reports are included.
Our portfolio, that we called the “Aurelion Index”, is periodically updated and available to paid subscribers here.
Below is the performance of the Aurelion Index from Plutus, an SEC-registered investment advisor that allows investors to invest in our portfolio.
Performance can be viewed in real-time here
Performance in April and May was weaker than the indexes, given that our portfolio did not benefit as much from the AI rally, but it was stronger in July, with a few companies performing well.
Diversification
Our portfolio of long-only stocks is diversified across sectors and regions. Most companies are listed in the U.S., Europe and Canada.
We are playing the long game, and diversification is important to us to perform across market cycles.
Fed Rate Risk
The expectations for interest rates in the U.S. have significantly changed since the start of 2026. They went from a strong environment with expected rate cuts to a situation where rates are now expected to rise, given inflation concerns.
Percentage Chance of a Rate Cut on the July 29, 2026 U.S. Fed Meeting
The Fed is now in an increasingly tougher spot, and it’s fair to say uncertainty around policy has increased.
This is why it is worth looking at how the portfolio is exposed to an environment where interest rates rise. Below are the portfolio’s returns on the days of Fed decisions since the start of 2026.
Or, presented another way:
The portfolio is clearly in good shape if U.S. federal rates are increased, with a low reaction and high alpha generated on those days. We look at a single company name further below.
We also provide a few companies on our shortlist that we currently find interesting.