To be honest, yes I could've perhaps waited a bit and executed a week later. But we can't see the future and the decision of the rebalance was the appropriate one at the time, in the way I do things. The way I see it is that we only have 1 way to trade. It is to look at today and evaluate the probability of something happening in a future horizon. I had no probability anymore, my thesis had played out. Whatever was there to harvest, in my view, was risk premium with a massive directional bet. Now I am still capturing that same upside, but without the idiosyncratic risk I carried. That is how I want my portfolio structured. As I am writing this, I will write a post on it, maybe it's better since I can write a bit about it.
Anyways, I still hold a decent chunk of my portfolio in it for long-term growth, and combined with the systematic exposure I have to it now, I am quite significantly exposed again.
Oh man one week too soon… been following since a while .. thanks for your content and wish you the best
Thanks a lot Anil.
To be honest, yes I could've perhaps waited a bit and executed a week later. But we can't see the future and the decision of the rebalance was the appropriate one at the time, in the way I do things. The way I see it is that we only have 1 way to trade. It is to look at today and evaluate the probability of something happening in a future horizon. I had no probability anymore, my thesis had played out. Whatever was there to harvest, in my view, was risk premium with a massive directional bet. Now I am still capturing that same upside, but without the idiosyncratic risk I carried. That is how I want my portfolio structured. As I am writing this, I will write a post on it, maybe it's better since I can write a bit about it.
Anyways, I still hold a decent chunk of my portfolio in it for long-term growth, and combined with the systematic exposure I have to it now, I am quite significantly exposed again.