A Moat As A Metaphor For The Protection Of Hedging
Performance Update On Our Berkshire Portfolio
Four months ago, we presented a hedged portfolio built around a position in Berkshire Hathaway (BRK.B) (BRK.A). In order to demonstrate the merits of our hedged portfolio method, we've been presenting our hedged portfolios (since June, exclusively in our Marketplace service), and then showing you how they perform. So far, we've updated the performance of 5 of these portfolios (here, here, here, here, and here). Each of those 5 portfolios is beating the market so far, but the Berkshire Hathaway one isn't so far. In the interest of transparency, we update its performance below. We close with a discussion of how hedging was a drag on the performance of our Berkshire Hathaway position, but improved the performance of a stock with a steeply negative return and has kept this portfolio in the black so far.
