Beating the FAANGs

FAANGS FINAL

Chart shows progress of DataSwarm’s Technology Services Portfolio from 2nd March 2020 until 9th July 2020, tracking performance against the FAANGs  

Over the past decade, FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks have grown faster than the overall S&P 500 and the more technology-focused NASDAQ – so if you can beat the FAANGs then you’re clearly doing something right.  With this in mind, we compared DataSwarm’s Technology Services Portfolio, which we have been building since 2nd March (just after the Covid Crash on 28th February 2020), against the FAANGs to see how we stood, with interesting results…

DataSwarm’s Technology Sector Portfolio:  +39% v FAANGs: +31%

Despite the market turmoil immediately after the crash, the DataSwarm System started pointing us towards the Technology Services Sector from 2nd March, indicating that this was an area on the verge of particularly strong growth.  From 2nd March to 9th July 2020 it highlighted approx. 30 stocks from within the Sector, all which it predicted could be good long term buys.

As can be seen from the above chart, we started to build DataSwarm’s Technology Services Portfolio, and despite an initial dip, it climbed quickly away, leaving both the collapsed FAANGs and S&P behind, pulling into profit from 16th March.

The FAANGs also followed the S&P down sharply during March and only began a solid rebound above the 0% profit line from 28th. Even despite the 57.69% epic rise of Amazon during this period, DataSwarm’s Technology Services Portfolio has remained ahead and by 9th July achieved +8% over the FAANGs (+31% v +39%).

What were our winning Stocks?

Combining market behaviour, industry trends and pricings, the DataSwarm System chews through the data to reveal the stocks it predicts should be bought and when. Winning stocks bought during the period included: LVGO (+189.88%), ZM (+156.69%), DOCU (+139.66%), COUP (+98.61%), ZS (+74.59%).

With hindsight, some of these stocks you will recognise as obvious winners, given the COVID-19 pandemic – for example Zoom.  The DataSwarm System picked out Zoom (ZM) as a very early trend (2nd March) well before it became the ‘go to’ place for much of our Covid Lockdown online life (business and relaxation), so we bought in at a very low price ($103.75).   Livongo Health (LVGO) however was not such an obvious choice at the beginning of March, but appeared on our radar on 8th April, just at the beginning of its tectonic rise from $32.04 to $107.56 by 9th July.  The COVID19 pandemic accelerated the need for new virtual care delivery models which Livongo Health provided – but its preliminary Q1 revenue topping previous guidance in early April added to its force and resulting skyrocketing.

Results

FAANGs may seem like the sharp buy from the outside, but DataSwarm gnaws from the inside, chews deep and holds fast.

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