Overview of the Investment Group

The Luna3.ai investment group was established on the 20th of May 2024. With a mission to achieve sustainable growth through diversified investments across multiple sectors and geographies. Our strategy is to identify high-potential assets and manage risks effectively to deliver consistent returns. The return amounts are based in AUD as Luna3.ai is headquartered in Melbourne, Australia and to be in line with currency returns.

With an initial capital of $100,000 USD, below is our asset allocation breakdown.

1. Super Micro Computer Inc. (SMCI.NASDAQ): Allocated 15% of the initial capital, totaling $15,000. The decision to invest in SMCI was based on its strong market position and potential for significant returns in the Electronic Technology sector.
2. Vertiv Holdings Co. (VRT.NYSE): Also received 15% of the initial capital, amounting to $15,000. VRT was chosen for its growth potential within the Electronic Technology sector.
3. NVIDIA Corp (NVDA.NASDAQ): Another 15% of the capital, equating to $15,000, was invested in NVIDIA. This allocation was driven by NVIDIA’s leadership in graphics processing technology and its robust market performance.
4. Vistra Corp (VST.NYSE): Received 10% of the initial capital, totaling $10,000. Investing in VST was aimed at balancing the portfolio with stable returns from the Utilities sector.
5. MicroStrategy Inc. (MSTR.NASDAQ): Another 10% allocation, amounting to $10,000, was made to MSTR. This investment targeted the Technology Services sector, leveraging MicroStrategy’s expertise in business intelligence and analytics.
6. Tesla Inc. (TSLA.NASDAQ): Also allocated 10% of the initial capital, equating to $10,000. Tesla’s innovative approach and growth potential in the Consumer Durables sector made it a strategic choice.
7. Dell Technologies Inc. (DELL.NYSE): Received 10% of the initial capital, totaling $10,000. Dell was selected for its strong market presence and potential in the Electronic Technology sector.
8. Microsoft Corporation (MSFT.NASDAQ): Allocated 5% of the initial capital, amounting to $5,000. Microsoft’s strong market position and consistent performance in Technology Services made it a valuable addition to the portfolio.
9. Alphabet Inc. (GOOGL.NASDAQ): Another 5% allocation, totaling $5,000, was invested in Alphabet. The investment was aimed at capitalizing on Alphabet’s dominant position in the Technology Services sector.
10. Applovin Corp (APP.NASDAQ): Received the final 5% of the initial capital, equating to $5,000. APP was chosen for its growth potential within the Technology Services sector.

Strategic Rationale

The initial allocation strategy was designed to create a balanced portfolio that could withstand market fluctuations while capturing growth opportunities. By investing in a mix of high-growth tech companies and stable utility firms, Luna3.ai aimed to achieve a robust and resilient portfolio. The allocation was continuously reviewed and adjusted based on market conditions and performance metrics, ensuring that the investment strategy remained aligned with the group’s long-term financial goals.

Consumer Durables

The Consumer Durables sector showed modest gains, with Tesla Inc. (TSLA.NASDAQ) being the primary contributor. Tesla’s stock appreciated by 1.83%, contributing a total return of AU$272.49, inclusive of capital gains and currency returns. Tesla Inc. (TSLA.NASDAQ) remains a primary choice in the Consumer Durables sector due to its innovative approach, strong market position, and consistent growth trajectory. Despite modest gains, its pioneering role in electric vehicles and renewable energy solutions continues to attract investors, promising long-term sustainability.

Electronic Technology

This sector was the standout performer in the Luna3.ai portfolio, yielding an impressive overall return of 6.94%. Notable contributions came from:

• Dell Technologies Inc. (DELL.NYSE): Achieved a remarkable 13.31% increase, resulting in a total return of AU$1,985.32. Dell Technologies Inc. (DELL.NYSE) exhibits remarkable potential within the Electronic Technology sector, boasting a diversified product portfolio and strong market presence. Its recent 13.31% increase underscores its ability to adapt to evolving technological trends and capitalize on growing demand for computing solutions.
  
• NVIDIA Corp (NVDA.NASDAQ): Delivered an outstanding 18.95% return, contributing AU$4,240.54. NVIDIA Corp (NVDA.NASDAQ) stands out as a top performer in Electronic Technology, driven by its leadership in graphics processing technology and AI advancements. With an outstanding 18.95% return, NVIDIA demonstrates resilience and innovation, positioning itself as a cornerstone investment in the tech sector.
  
• Vertiv Holdings Co. (VRT.NYSE): Added a solid 5.39% return, amounting to AU$1,205.83. Vertiv Holdings Co. (VRT.NYSE) showcases solid growth potential within Electronic Technology, leveraging its expertise in critical infrastructure solutions. Its 5.39% return reflects a stable performance amidst market fluctuations, highlighting its reliability and strategic importance in supporting digital infrastructure.
  
• Super Micro Computer Inc. (SMCI.NASDAQ): Despite the overall positive trend in the sector, SMCI experienced a downturn of -7.75%, resulting in a loss of AU$1,733.80. Despite Super Micro Computer Inc.’s (SMCI.NASDAQ) downturn of -7.75%, its overall positive trend in the Electronic Technology sector underscores its significance as a player in server solutions and data center infrastructure. Despite short-term challenges, SMCI’s fundamental strengths and market positioning warrant consideration for long-term investment strategies.

Technology Services

The Technology Services sector faced some challenges, recording an overall decline of -1.22%. Specific performances included:

• Applovin Corp (APP.NASDAQ): Managed a modest gain of 0.98%, yielding AU$72.94. Applovin Corp (APP.NASDAQ) demonstrates resilience amidst the challenges faced by the Technology Services sector, managing a modest gain of 0.98%. Its ability to navigate market fluctuations and capitalize on mobile advertising trends positions it as a promising investment, offering steady returns and growth potential.
  
  Applovin Corp (APP.NASDAQ) specializes in mobile app development and marketing, offering a comprehensive platform for app developers to monetize their products through targeted advertising and user engagement strategies. With a focus on data-driven insights and optimization tools, Applovin empowers developers to maximize the reach and profitability of their apps across various platforms and devices. Its ability to adapt to changing trends in mobile technology and consumer behavior makes it a valuable player in the rapidly evolving mobile app ecosystem.
  
  
• Alphabet Inc. (GOOGL.NASDAQ): Faced a slight decline of -2.06%, resulting in a loss of AU$153.30. Alphabet Inc. (GOOGL.NASDAQ) experienced a slight decline of -2.06%, reflecting short-term challenges in the Technology Services sector. Despite this, Alphabet’s dominant position in online advertising, cloud computing, and search engine services solidifies its long-term viability, making it a stable investment choice despite minor setbacks.
  
• Microsoft Corporation (MSFT.NASDAQ): Experienced a minor decrease of -0.46%, translating to a loss of AU$34.66. Microsoft Corporation (MSFT.NASDAQ) witnessed a minor decrease of -0.46%, showcasing its resilience amidst sector-wide challenges. With a diversified product portfolio spanning cloud services, productivity software, and gaming, Microsoft remains a frontrunner in the Technology Services sector, offering stability and growth potential for investors.
  
• Microstrategy Inc. (MSTR.NASDAQ): Recorded a more significant drop of -2.29%, amounting to a loss of AU$341.16. Microstrategy Inc. (MSTR.NASDAQ) is a prominent provider of enterprise analytics and mobility software, empowering organizations to harness the power of data for informed decision-making. Beyond its core business, Microstrategy gained attention for its significant investment in Bitcoin, allocating a substantial portion of its treasury reserves to the cryptocurrency. This strategic move reflects Microstrategy’s belief in Bitcoin as a store of value and hedge against fiat currency depreciation, signaling a bold and unconventional approach to capital allocation that has garnered both praise and scrutiny from investors and industry observers alike.

Utilities

The Utilities sector emerged as a strong performer, with a notable 10.32% return. Vistra Corp (VST.NYSE) was the key contributor, generating a return of AU$1,539.28. Vistra Corp (VST.NYSE) operates as a leading integrated power company, specializing in electricity generation and retailing services. Vistra Corp’s (VST.NYSE) role in the upcoming AI revolution extends beyond traditional utility services. As AI technologies become increasingly integrated into various industries, the demand for reliable and sustainable power sources to support data centers and computational infrastructure will surge. Vistra Corp’s focus on clean energy solutions and innovative power generation technologies positions it as a key enabler of the AI revolution, providing the essential energy infrastructure needed to power data processing, machine learning algorithms, and AI-driven applications. By leveraging its expertise in electricity generation and retailing services, Vistra Corp is poised to play a pivotal role in fueling the growth and scalability of AI technologies across diverse sectors.

Portfolio Summary

Over the reporting period, Luna3.ai’s diversified portfolio demonstrated resilience and strategic acumen, achieving a grand total value of AU$156,249.78. The total returns were composed of AU$5,593.73 in capital gains, AU$0.96 in dividends, and AU$1,458.79 in currency returns, summing up to AU$7,053.48 or 4.75% since inception.

Luna3.ai Performance Highlights 20/5/2024- 31/5/2024

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investing in stocks involves risk, and individuals should conduct their own research or consult with a financial advisor before making any investment decisions.