Broad Rebound Lifts Every Portfolio, Four Beat Their Benchmark
The August 7 update reverses last week's picture. Every benchmark and every Mosaic portfolio closed higher, and four of the seven strategies finished ahead of their reference index. Nasdaq100 led with 7.45%. Only three markets changed their selections, and benchmark hedge levels ranged from about 8% to 20%.
USA100 gained 3.66% against 3.51% for the benchmark, recovering most of the previous week's loss. The selection was unchanged at MU, CAT, GEV, FDX and CSCO, and the benchmark hedge stayed close to its prior level at 7.63%, still the lowest in the group.
Nasdaq100 posted the strongest result of the week at 7.45% versus 5.09% for the benchmark. ON entered the portfolio in place of GFS, keeping the selection firmly tilted toward semiconductors, with the benchmark hedge easing to 12.56%.
Italy40 gained 3.82% against 2.84%, the second widest positive gap of the week. PST.MI entered the selection and replaced PRY.MI. Its benchmark hedge rose sharply from about 12% to 13.95%, the largest increase across the seven markets.
UK100 gained 0.92% against 0.48% in a much quieter week for its benchmark, and rotated into BEZ.L, removing IGG.L. The hedge was broadly stable at 8.42%.
The three portfolios that lagged all did so while still gaining ground. Europe50 rose 1.93% versus 2.87% and Germany40 rose 1.57% versus 2.73%, both without rotating. Australia50 showed the widest shortfall, gaining 1.14% against a benchmark advance of 3.65%, with its selection unchanged and its hedge easing slightly to 19.76%.
Compact Weekly Dashboard
| Market | Current Tickers | Rotation | Hedge | Portfolio | Benchmark |
|---|---|---|---|---|---|
| USA100 | MU, CAT, GEV, FDX, CSCO | No change | 7.63% | 3.66% | 3.51% |
| Nasdaq100 | MU, MRVL, ON, CSCO, ROST | In: ON Out: GFS | 12.56% | 7.45% | 5.09% |
| Europe50 | NOKIA.HE, ASML.AS, ENI.MI, ENGI.PA, BAYN.DE | No change | 10.78% | 1.93% | 2.87% |
| Germany40 | IFX.DE, ENR.DE, RWE.DE, BAYN.DE, DHL.DE | No change | 12.01% | 1.57% | 2.73% |
| Italy40 | STMMI.MI, SPM.MI, ENI.MI, BPE.MI, PST.MI | In: PST.MI Out: PRY.MI | 13.95% | 3.82% | 2.84% |
| UK100 | GLEN.L, CCC.L, PCT.L, SDR.L, BEZ.L | In: BEZ.L Out: IGG.L | 8.42% | 0.92% | 0.48% |
| Australia50 | BHP.AX, WOW.AX, WDS.AX, QBE.AX, MQG.AX | No change | 19.76% | 1.14% | 3.65% |
Portfolio Message
Two consecutive weeks of opposite sign are a useful reminder of what concentration does. The same selections that lagged a rising market on July 31 led it on August 7, with no change at all in four of the seven markets. Reading either week in isolation would have produced the wrong conclusion.
Australia50 is the clearest illustration of the mechanics: it carries the highest benchmark hedge of the group at almost 20%, and in a week when its benchmark advanced 3.65% that hedge is precisely what held the portfolio back. The hedge is doing its job, and the cost of that protection shows up in exactly this kind of week.
This weekly update is research material only and is not personalized financial advice.
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