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Late To The Party: Lex Likes Nvidia


Nvidia was one of our site's top names in January, when it appeared in a hedged portfolio we shared at the time, and again in June.

Over the weekend, the FT's Lex column climbed on the Nvidia bulls' bandwagon. We recap Lex's bullish case after updating the performance of the January portfolio.

We also present an updated hedge for Nvidia longs looking to add downside protection over the next several months.

A Top For Our Site In January, A Top Name For Lex Now

A Top For Our Site In January, A Top Name For Lex Now

Nvidia (NASDAQ:NVDA) was one of Portfolio Armor's top names back in January, appearing alongside Amazon (NASDAQ:AMZN) and Activision Blizzard (NASDAQ:ATVI), along with two bearish ETFs, in the hedged portfolio below, which we shared in this article at the time.

Nvidia was one of our site's top-ranked names again in June, as we mentioned then (Locking In Nvidia Gains). The FT's Lex column was a little late to the party, but it published a bullish note on Nvidia over the weekend - Nvidia: vroom (free to read with FT registration). We'll recap Lex's bullish case for the stock, and post an updated hedge for Nvidia longs who want to add some downside protection. First, a quick update on how the portfolio above performed.

Nvidia and the other two tech stocks in the portfolio all performed well over the next several months, while the two bearish ETFs that floated into Portfolio Armor's top-10 names during January's market gloom, the ProShares UltraShort Bloomberg Crude Oil ETF (NYSEARCA:SCO) and the Direxion Daily FTSE China Bear 3x Shares ETF (NYSEARCA:YANG) dropped like rocks as the bull market returned.

The hedges limited the damage done by the ETFs, but also limited Nvidia's gains; altogether, the portfolio ended up returning about 5.4% over 6 months.

Lex's Bullish Case For Nvidia

In a nutshell, Lex sees Nvidia as a picks...