USA Twenty Stock Portfolio: Jan 2026
The year opened with a great positive result. The model was up 3.39% and the S&P500 1.47% for a 1.92% alpha. Our underweight in technology helped performance.
The Savvy Yabby Report distributes our institutional grade model portfolios to paying subscribers on a monthly basis. The current list includes these strategies.
Australian 20 Stock Model Portfolio
USA 20 Stock Model Portfolio
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Global Best Ideas 25 Stock Model Portfolio
The existing research notes and newsletter offer remains, but you will see some tighter integration between what we write there and the model portfolios.
ERRATA: The performance has been corrected as it missed the last trading day.
Regulatory Disclosures
This service is owned and operated by Jevons Global Pty Ltd.
The licensing and complaints procedure is outlined in our Financial Services Guide.
For legal reasons, I need to include this informational disclosure.
These portfolios follow the Jevons Global investment process.
The last change to the model portfolio was effective at close 8-Dec-2025.
These changes were described in our note USA 20 Stock Model Portfolio.
NB: Past performance is no guide to future results.
Model portfolios are not audited and are only approximate guides to real results.
Performance Summary for Jan-2026
The year opened positively for the benchmark S&P 500. Through the month the total return of the index was 1.47%. The return for the model was 3.39%, which was 1.92% ahead of the benchmark. These are total returns in USD.
The relative performance chart shows cumulative alpha versus the benchmark.
This had deteriorated going into mid 2025 but has improved since then.
Overall, the model performance since inception has been solid.
Since this report is mid-month, for the period ended 31-Jan-2026, I included the month to date numbers for February, up until 13-Feb-2026 close.
There has been some serious damage to US software stocks in the past few weeks, but our model portfolio largely dodged this bullet.
Key Contributors
The top three positive contributors to performance in Jan-2026 were:
The top three negative contributors to performance in Jan-2026 were:
The strategy clearly benefited from risk management through a diversified exposure to a range of industries. The hedging with gold miner Newmont XNYS: NEM was particularly helpful, along with exposure to the better value Meta XNAS: META.
Diesel engine and heavy equipment play Cummins XNYS: CMI rounded out the list of top contributors. On the negative side, Apple XNAS: APPL, Microsoft XNAS: MSFT and Oracle XNAS: ORCL led the drag, but damage was contained via position sizing.
Notwithstanding the current fear concerning damage to software business models due to growth of Agentic AI, and “vibe coding” of new tools, we are constructive on current valuations for our technology holdings. The model is 7% underweight the current S&P 500 holdings in Digital Technology, which is 46.9% of the index.
We are overweight in Resources & Energy and Physical Infrastructure.
The situation will require active monitoring, but we can report that month to date, for the close of trading in New York on 13-Feb-2026, the model is up 0.99% while the benchmark S&P 500 is down -1.48%. So far, we are 2.47% ahead this month.
Portfolio Valuation Metrics
The portfolio valuation is significantly cheaper than the market.
The dividend yield and Return on Equity (ROE) are better than market.
The sector positioning is overweight resources, physical infrastructure, and analog technology, paid for with a clear underweight to digital technology.
The situation remains very volatile in the US market. Presently, we see no reason to alter the settings but will monitor the conditions.
The current weights for month-end are below.
