Action

The Nasdaq Composite continues to trade in a choppy, disjointed fashion halfway through the month of November. Ever since the October 10th tariff scare, the market hasn't quite acted right. On the surface, the indexes recovered and pushed to new highs, but they did so on weak participation, and that lack of breadth is now catching up. TEst Test Test

Cycle

We're 131 days into the current market cycle, with the 20-day moving average remaining above the 50-day moving average. This ranks as one of the longest trends in recent history, suggesting that a period of rest and digestion into year-end is probably necessary, rather than a surprising development. Test Test Test.

Breadth

Breadth remains uninspiring, with only about 35% of stocks trading above their 50-day moving averages, and new lows have consistently outpaced new highs in recent weeks. Until further notice the market is guilty until proven innocent.

Exposure

Exposure has fallen off in recent weeks, and our current target exposure sits at 40%-60%.

Portfolio

Our portfolio remains selectively invested in a handful of biotechnology and healthcare names. As the broader market has slipped into a mild correction and many AI and technology leaders consolidate their strong year-to-date gains, capital has rotated into these more defensive and fundamentally resilient areas, and we have followed suit. Overall equity exposure is currently around 50%, reflecting a deliberate posture as truly actionable opportunities remain limited outside of medical.

Performance

Our performance in November has been disappointing. I entered the month with meaningful exposure to a number of AI- and technology-related leaders that have since come under pressure, and I was not sufficiently proactive in harvesting gains and defending capital as conditions deteriorated. In hindsight, tighter sell discipline and a more conservative risk posture would have been warranted, and that is informing how I am positioning the portfolio going forward.

Additions / Subtractions

Over the past couple of weeks, we have exited our positions in NVIDIA, Palantir Technologies, Robinhood Markets, and Credo Technology, and redeployed that capital into fresher opportunities, including Arcutis Biotherapeutics, BrightSpring Health Services, Indivior, Eli Lilly and Company, and United Therapeutics Corporation.

Exposure

38.5%