Selective Edge Stocks and Options

The best investments don't show their value right away. They are built where a sound thesis, patience and disciplined execution meet, and in markets that alternate between exuberance and panic far more often than they rest in the middle. The core: a diversified portfolio of conviction holdings. We hold 30–35 companies, mostly US-listed with a few European names, chosen through fundamental analysis and held for as long as the thesis stays intact. No single stock is allowed to dominate: most positions are 2–4% of the portfolio and none exceeds about 5%. We are not trading quarterly catalysts. We want businesses whose competitive advantage keeps compounding, and we accept that some of them will be out of favor for a long time before they are proven right. The engine: selling options. The options layer is not an afterthought. It has been a good source of returns so far. We sell puts on companies we want to own, at prices we would be glad to pay, and we usually roll them before expiration rather than take assignment. On some holdings we sell covered calls, and those we don't roll. The result is a steady stream of premium from volatility, while the stock portfolio does its slower work. The risk is stated plainly. The short puts are secured by margin and by a collateral reserve held in short-term Treasury and bond ETFs, not by cash alone. Gross exposure has averaged about 1.4x equity and has not exceeded about 1.9x. In a sharp, broad selloff, losses on the stocks and the puts will add up, and drawdowns can be deeper than anything seen so far. This is not a low-risk income product. It is an equity strategy that uses leverage, run with discipline. Every signal mirrors trades in own account. Same capital, same risk, same decisions.

Fundamental conviction equity, structural sector tailwinds, amplified by a disciplined options overlay — collecting premiums while compounding long-term capital.