Portfolio Update: 03/20/2025

Today, I made a slight rebalance in my portfolio, so, as always, it’s time to update you.

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My Current Portfolio

• High Tide (HITI): 24.8% – Average cost $1.86/share
• Rocket Lab (RKLB): 20.8% – Average cost $4.82/share
• Hims & Hers (HIMS): 19.1% – Average cost $10.07/share
• DLocal (DLO): 18.1% – Average cost $10.96/share
• Nebius Group (NBIS): 17.2% – Average cost $30.69/share

The only change from my prior update (on X, not in an article here) is that I bought more DLocal (DLO). To do so, I had to slightly trim High Tide (HITI).

Here’s the reasoning behind it:

1st – I really wanted to buy more DLocal to lower my average cost, which was previously $11.40/share. I believe it’s one of the cheapest stocks in the market right now, and at the same time, it’s benefiting from strong tailwinds due to USD devaluation in Q1.

By adding more DLocal, I’m not only increasing my exposure to a company with huge upside potential over the next five years and minimal downside, but I’m also increasing my exposure to emerging markets, which I think could outperform in the coming months.

Make sure to check my deep dive on the company here.

2nd – Why did I trim HITI instead of any other position?

Let’s start with why I didn’t want to trim my other holdings.

RKLB – I’m not touching this position, at least for the next few years. When I first started buying Rocket Lab, I planned to build a much larger position, but the stock skyrocketed too quickly, and I didn’t have time to buy as much as I wanted. Yes, it’s a very large position in my portfolio, but with merit, as my average cost is $4.82/share. While number crunchers might see the company as speculative or overvalued, I believe that if one truly understands the correct narrative behind the thesis, the risk becomes negligible. My way of "buying more" (as I initially wanted) is by not selling a single share.

HIMS – To initiate my positions in DLocal and Nebius, I had to significantly trim Hims & Hers. I sold part at ~$60/share and the rest at $40/share. I still absolutely believe in the long-term investment thesis, so I don’t want to trim more for now. I sold because, in the short term, HIMS has some downside risk, mainly due to headlines surrounding GLP-1s. Also, at $60/share, it became a 30% position in my portfolio, with over 500% returns, so I felt it was time to lock in some profits. The gains I took more than cover my initial investment, so I’m comfortable letting the rest ride.

NBIS – I initiated this position this quarter, and it’s currently below my average cost, so trimming wouldn’t make sense. I still believe the stock is strongly disconnected from its fundamentals, and sooner or later, the market will recognize that. However, before they show more execution in the coming quarters, I understand that it’s still a narrative-driven stock. Even so, I wouldn’t trim at this price — it’s too undervalued, in my opinion.

That left me with HITI, which was close to 30% of my portfolio, making it my largest position by far and the easiest choice.

I want to emphasize that this rebalance isn’t due to a decrease in my confidence in its long-term trajectory or execution. I still believe High Tide is a great opportunity at its current valuation. However, I had to make a choice, and this seemed like the most logical one. This also helped me reduce my exposure to Canada, which I felt was too high compared to other stronger regions.

A few days ago, High Tide reported its Q1 FY2025 results — check out my full review here. As I said, it wasn’t the best quarter ever, but that didn’t impact my long-term investment thesis because the problems were mostly in its e-commerce segment, which accounts for just 5% of revenue and is not part of the company’s core business. However, it’s also true that the business model change that caused this hurdle happened in December 2024, meaning this quarter was only partially affected. Q2 FY2025 will be the first fully impacted quarter by this shift, so while I still think HITI is severely undervalued, we could see additional downward pressure after the next earnings report. In contrast, DLocal will benefit from FX tailwinds in the next report, so a slight rebalance here made sense.

Performance and Looking Ahead

It’s worth mentioning that I plan to open a new position soon. While I’ll always be a highly concentrated investor, I want to protect my 173% overall performance in 2024 by increasing the number of stocks I hold.

After such a strong year, being down 17% YTD in 2025 is not the end of the world, and I was prepared for this possibility. Fortunately, I know and deeply understand what I own, so volatility doesn’t shake my conviction.

Stay tuned for more updates.

Thanks for reading!