Two changes this week, logged here for the record:
Hedged
We're fully positioned right now, which means the only way to raise cash on a drawdown without selling names we still want to own is to hedge for it. The logic: put on a small short in the semiconductor industry — a sector with enough mid-cycle volatility that a modest, defined-risk position can do outsized work if the broader market rolls over. Sized at roughly 1% of the portfolio. If it's wrong, that's the full cost: 1% of the book and nothing more. If it's right, the payoff should be large enough to scale this from a 1% hedge into a 7-8% position and recycle the proceeds into the names we already like, bought lower, right when we'd want to be adding. This isn't a view on any specific semiconductor name — it's cheap insurance, sized so the downside is capped and the upside does more for the portfolio than the 1% at risk would suggest.
Added
Started a new position tied to the mean-reversion framework — small, roughly a quarter of a normal-sized position, meant to be built out over time rather than established all at once. Full writeup to follow as a Thesis post once the position is closer to full size.
Unchanged
Everything else in the portfolio is unchanged this week. The point of posting even the "nothing happened" weeks is to keep the record honest — this section is as much about what didn't change as what did.