Investment Story: Portfolio Recovery

Mr. Boyko was a dentist from Bulgaria who was a wise spender and tried to invest all his savings.

He tried to listen for advice of analyst agencies and different famous investors to invest more “properly”. portfolio was created in 2019 with USD 300k. He wasn’t our client that time and tried to manage his investments by his own. His During the COVID period and during 2021 stock markets have risen rapidly, and it was the “golden” era for all types of investors. Mr. Boyko raised his capital for 35% and at the end of 2021 he had USD 400k on his account. This period created biased thoughts markets always will rise.?

Cold shower happened in 2022, where 1st quarter was the most declining period for two years. That time Mr. Boyko lost all his gains and, in the middle of 2022, he had USD 300k again. Three years of investment history leaded to zero-profits.?

The dramatic part has happened in the second part of 2022, where Mr. Boyko’s portfolio declined for additional 20%. At the beginning of October, 2022, he had fully invested portfolio with NAV about USD 240k.?

That time he applied for our help and described his difficult situation. We provided our expertise to use three-step improvement:

• Audit. With this step we try to create a portfolio structure, its’ correlation with markets, risk-parameters, conclusion, summary, perspective.
• Rebalance. This step is required to work with existing positions inside the portfolio. Some of them we try to cut and minimize their amount in the portfolio, and some of them we raise to have bigger stake there.?
• Reinvest. Part of available cash after rebalance we invest in new positions to create steadier portfolio with less market correlation.?

Mr. Boyko was being a doctor for people, while we were being doctors for his own portfolio. At the beginning of March, 2023 his portfolio regained part of losses and became less volatile. At this time his portfolio NAV worth USD 265k, which is less, than his initial USD 300k, but 10% more, than amount of USD 240k which was given to us.?

We try to work with people who were abandoned by the “successful success” trend. We have fully-expertise team to help and to diminish losses of existing investment portfolios. The main goal is to recover portfolios to the initial level with reasonable risk and wide diversification.