Start – Blog – Scalable capital in der corona krise
In January, I was still thinking about writing about the good values of my Scalable Capital portfolios (the screenshot doesn’t even show the maximum values), but that would only be a historically interesting memory, because March was a steep downhill. Both portfolios were deep in the red for a while, now at least the 10% VaR portfolio is slightly up again, not only the DAX has risen again. I am not an investment specialist and will definitely not make a forecast for the next few months, but I have decided for myself that I will leave everything as it is, even if Scalable Capital has achieved worse values than its market competitors in this environment.
In the FinanceForward podcast, SC founder Erik Podzuweit tells us that the current crisis is statistically extremely rare (I would have called it extremely unlikely) and that you have a worse performance due to the high equity shares. Example: At quirion, I had a fixed equity component of 50%, with my Scalable Capital 20% Value at Risk portfolio it was higher. What doesn’t come out so well in the interview is that Scalable Capital has kept its promise with VaR control (at least in my portfolios). A 10% VaR means that there is a 95% chance that my portfolio should not go lower than 10% within a year. While Mr. Podzuweit speaks of convenience as the USP of Scalable Capital in the podcast, that would be a much larger USP for me: I am very likely to lose a maximum of 10 or 20%, depending on the portfolio, even if the market develops even more negatively. That worked well for me, even with the 5% uncertainty.
But this also has a disadvantage: because the sold shares are gone. If the stock markets hopefully recover soon, then it may be precisely these shares that will be bought again. This means transaction fees, but you may also buy back shares at a higher price than you sold them. This is not a criticism of Scalable Capital, because you can’t have one without the other. Either I want to have an ejection seat, if you want to call the value at risk approach, or I want to keep my plane.
Unfortunately, I cannot report how my investment advisor performs with the manually compiled portfolio. MLP has not yet managed to restore my access to the online portal. Update: in the meantime the access works, the portfolio is time-weighted at -1.84%, so a little worse than my 10% VaR portfolio at Scalable Capital, but a lot better than my 20% VaR portfolio.
By the way, if you sign up for Scalable Capital via this link, you and I will get a small bonus