Patryk Peltonen aka Slow and Steady 

Background: Who is Patryk Peltonen?

Patryk Peltonen is a seasoned investor with a robust educational and professional background. Holding an MScBA and the CISI Level 3 Certificate in Wealth & Investment Management, Peltonen combines academic knowledge with practical experience. Since 2012, he has been actively managing his investments, and he joined eToro in April 2019. Balancing a full-time career as a technology consultant, Peltonen dedicates his personal time to refining and executing his investment strategies.

Investment Strategy: Diversification and Risk Management

Peltonen's strategy is anchored in long-term diversified ETF (Exchange-Traded Fund) investing, emphasizing risk mitigation through less volatile assets such as bonds, gold, and the US Dollar. His portfolio typically comprises 80-90% ETFs and 10-20% individual stocks, deliberately excluding cryptocurrencies to maintain stability.

Key Elements of the Strategy:

• Long-Term Focus: Peltonen advocates for a long-term investment horizon, allowing assets to grow and weather market fluctuations.

• Diversification: By spreading investments across various asset classes, sectors, and geographies, the strategy minimizes risk and enhances potential returns.

• Risk Hedging: Incorporating bonds, gold, and the US Dollar helps in hedging against market volatility and economic uncertainties.

• Balanced Portfolio: The portfolio remains consistently balanced, enabling investors to copy the strategy at any time and add to their investments as desired.

Portfolio Composition: A Closer Look

Peltonen's portfolio is meticulously constructed to ensure broad exposure while maintaining stability. Here's a breakdown of his investment distribution:

• ETFs (84.66%): The majority of the portfolio is allocated to ETFs, providing diversified exposure to various sectors and asset classes.

• Health Technology (5.79%): Investments in health technology ETFs capture the growth potential in this dynamic sector.

• Consumer Non-Durables (5%): This segment includes companies with stable earnings and essential products.

• Technology Services (2%) and Consumer Services (1.08%): These allocations target sectors with growth prospects and resilience.

• Commercial Services (1.03%) and Cash (0.42%): Maintaining liquidity and exposure to commercial services adds further diversification.

Geographical and Sectoral Diversification:

• Exchanges: Predominantly invested in the NYSE (94.64%) and Nasdaq (4.92%), ensuring access to major US markets.

• Countries: The portfolio includes significant holdings in the United States (7.09%), China (3.08%), the United Kingdom (2.93%), and Belgium (1.82%).

• Dividends: With a dividend yield of 1.35%, 15 out of 21 instruments pay dividends, providing a steady income stream.

Performance Overview: Steady Growth with Controlled Risk

Peltonen's "Slow and Steady" strategy has demonstrated consistent performance over various time frames:

• Year-to-Date (YTD): +13.3%

• 2 Years: +24.42%

• 5 Years: +5.2% Annualized

The strategy emphasizes minimizing drawdowns and maintaining a low volatility profile, as evidenced by a Beta of 0.31 and a Sharpe Ratio of 0.41. These metrics indicate a balanced approach that prioritizes steady returns over high-risk, high-reward scenarios.

Risk Management: Ensuring Stability

Peltonen targets a low-risk profile, aligning with an eToro risk score of 3 or lower. This conservative approach is achieved through:

• Asset Allocation: Predominantly investing in ETFs and stable assets like bonds and gold.

• Regular Rebalancing: Adjusting the portfolio to maintain the desired balance between growth and defensive assets.

• Selective Stock Exposure: Limiting individual stock investments to 10-20%, focusing on companies with strong fundamentals and wide moats.

Trading Philosophy and Recent Adjustments

Peltonen adopts a disciplined trading approach, characterized by thoughtful adjustments to his portfolio based on market conditions. Recent trades highlight his adaptive strategy:

• Gold Positions: Closed to capitalize on intermediate peaks, reallocating funds to growth-oriented ETFs like IJR and VUG.

• Long-Dated Government Bonds (TLT): Swapped for leveraged TTMF positions to recover losses, demonstrating tactical flexibility while maintaining cautious exposure.

• Bargain Investing: Increased holdings in undervalued stocks such as Estee Lauder Companies Inc. (EL), GlaxoSmithKline plc ADR (GSK), and Pfizer (PFE) during market sell-offs.

• Selective Exposure to Chinese Tech: Maintained a 2% position in NetEase Inc.-ADR (NTES), capitalizing on attractive valuations despite geopolitical concerns.

Peltonen's recent trade activities reflect his commitment to balancing growth potential with risk management, ensuring the portfolio remains resilient in varying market environments.

Educational and Professional Credentials

Peltonen's expertise is underpinned by his educational achievements and professional experience:

• Education: Master of Science in Business Administration (MScBA) and CISI Level 3 Certificate in Wealth & Investment Management.

• Professional Experience: Full-time technology consultant with extensive experience in managing personal investments since 2012.

These credentials lend credibility to his investment strategies and reassure investors of his capability to manage portfolios effectively.

Engagement and Accessibility

Peltonen maintains regular communication with his copiers, posting updates weekly or bi-weekly during weekends. This consistent engagement ensures transparency and keeps followers informed about portfolio adjustments and market insights.

How to Follow or Copy the Strategy:

• Balanced Portfolio: Investors can copy the strategy at any time, with the flexibility to add to their investments as they see fit.

• Educational Resources: Peltonen offers detailed explanations of his strategy through platforms like YouTube, providing valuable insights into his investment principles.

• Community Interaction: Encouraging questions and discussions, Peltonen fosters an interactive community where investors can learn and grow together.

Conclusion: Slow and Steady Wins the Race

Patryk Peltonen's "Slow and Steady" strategy exemplifies a disciplined, balanced approach to investing. By prioritizing diversification, risk management, and long-term growth, Peltonen offers a reliable blueprint for investors seeking stability and consistent returns. His thoughtful adjustments and commitment to transparency make his strategy accessible and appealing to both novice and experienced investors alike.

In an investment landscape often characterized by volatility and rapid shifts, Peltonen's method stands as a testament to the enduring wisdom of patience and prudence. For those looking to build a resilient portfolio, adopting the principles of "Slow and Steady" could well be a path to financial success.