Portfolio Performance Overview
2024 was an exceptional year for my equity portfolio, delivering over +51% returns. This outperformance was largely driven by a mix of strategic concentrated positions, options strategies, and steady dollar-cost averaging (DCA) into the S&P 500. Below, I outline the key contributors to my success and the strategies I used to manage risk.
Key Contributors to My Portfolio’s Growth
SoFi Technologies (SOFI):
My best performing position, SoFi, played a critical role in my portfolio’s performance. Throughout the first half of 2024, I executed a covered call strategy, using the premiums to accumulate more shares. My calls were never assigned, allowing me to maintain full exposure to SoFi. This almost wrecked my performance until October, the company saw a significant surge in value following major expansion announcements and strong earnings reports. By year-end, SoFi had risen 87.35%, pushing my overall returns higher. My exposure to SoFi grew from ~6% of my total assets to 11.4% in 2024, due to its impressive performance and even after my continued savings and investments elsewhere.
Apollo Global Management (APO):
Another standout performer was Apollo (APO), which I began accumulating in late February 2024. As the year progressed, I continued adding to my position, confident in Apollo’s ability to capitalize on the growing demand for private market investments. The shares delivered 73.98% returns in 2024, and I have continued adding to this position into 2025, anticipating a major shift in retirement investment products that include private market exposure. Apollo’s stellar year further bolstered my portfolio’s performance.
GameStop (GME):
A smaller but profitable strategy was my covered call approach on GameStop. Starting in May 2024, after a Roaring Kitty (Keith Gill) post sparked renewed interest (and volatility) in the stock, I sold short-term covered calls (1 to 2 weeks out) until December. This strategy yielded ~40% returns over the period, enhancing my portfolio’s overall performance despite GME not being a major position.
S&P 500 (VOO):
I started with a 40% allocation to the S&P 500 (VOO), and it provided a strong baseline return of +23.31% for 2024. This was a position I regularly added to through my 401(k) contributions and an additional weekly investment in my taxable account. While my concentrated bets outperformed, the S&P served as a stable foundation, ensuring my portfolio had solid gains even in a more passive allocation.
Risk Management Strategies
While my 2024 performance was strong, my risk management was relatively weak:
- Selling covered calls: I sold covered calls against SoFi and GME which allowed me to generate income and accumulate more shares, in SoFi and VOO.
- Dollar-cost averaging (DCA) into VOO: My most consistent volatility protection was weekly investing in VOO, ensuring my portfolio always had exposure to the broader market.
- Limited speculative exposure: While I engaged in higher risk strategies with SOFI & GME, I had minor positions in ARGT, OKLO, & MCHI, that were never large enough to jeopardize my overall portfolio health.
Portfolio Allocation Start vs. End of 2024
At the beginning of 2024, my portfolio was more diversified but lacked heavy conviction in specific sectors. By the end of the year, my largest positions had shifted significantly, particularly with SoFi and Apollo taking up larger portions of my overall portfolio.
Looking Ahead to 2025
While SoFi, Apollo, and the S&P 500 had incredible years, I remain uncertain if they can replicate their 2024 performance. Additionally, my willingness to engage in more speculative strategies, like my GME covered calls, is not the same for 2025. Currently, my portfolio is finance and banking heavy, reflecting my belief in the long-term growth potential of both consumer and institutional banking.
In 2025, I will continue to add to my holdings weekly, with plans on adding allocations to energy and infrastructure to balance my portfolio further. While I remain optimistic about the financial sector, I recognize the importance of diversifying my investments to sustain long-term success.
My 2024 returns were the result of a mix of concentrated bets, aggressive covered call selling, and continuous investing in winners and losers. While it was an exceptional year, I recognize that my future performance will not be able to replicate 2024. Looking ahead, I aim to build on my success by mitigating my downside risks and minimizing my concentrated bets only to ones I whole heartedly believe in.