Week in Review: Feb 20 - Feb 28, 2026

Performance Snapshot

This week AlphaWizzard delivered +2.7%, significantly outperforming both the S&P 500 (-0.5%) and Nasdaq (-0.2%) as markets struggled with inflation concerns. Year-to-date, we've extended our lead to +21.6% compared to SPY's modest +0.6% gain and QQQ's -1.1% decline. Since inception in November 2025, our systematic approach has generated +31.6% returns while maintaining superior risk discipline with a maximum drawdown of -6.2% versus -7.3% for the Nasdaq.

The F1 Dashboard

Our F1 Dashboard maintains 83% equity exposure this week, keeping us in ACCELERATING mode as our systematic models continue to identify favorable market conditions despite recent volatility. This high exposure level reflects our algorithms' confidence in the current opportunity set, allowing us to capitalize on market dislocations while other investors retreat. The dashboard's disciplined approach to risk management ensures we're positioned for growth when conditions warrant aggressive positioning.

Market Radar

Markets faced a challenging week as inflation data delivered unwelcome surprises that rattled investor confidence. The Core PCE Price Index surged 0.5% in January versus just 0.2% expected, while annual core inflation accelerated to 3.1% from December's 2.8%. Adding fuel to the fire, the Producer Price Index climbed 0.5% versus 0.3% consensus, signaling that inflationary pressures remain stubbornly embedded in the economy. These readings forced investors to recalibrate Fed expectations, with the probability of June rate cuts falling from 85% to 58%.

Sector performance reflected this inflation anxiety, with defensive areas like Consumer Staples (+2.4%) and Healthcare (+2.2%) finding favor while Technology (-1.5%) and Financials (-2.0%) struggled. Basic Materials bucked the trend with a solid +0.8% gain as commodity prices responded positively to inflation concerns. Our portfolio's heavy weighting in materials and selective tech positioning proved prescient, allowing us to navigate the cross-currents effectively.

Looking ahead, markets are grappling with the reality that the Fed's cutting cycle may be more gradual than anticipated, while companies begin passing through tariff costs to consumers. This environment favors our systematic approach, which can quickly adapt to changing market dynamics without emotional bias.

Under the Hood

Top Contributors

Laggards

Sector Performance

Here's how the major sectors performed this week and how our stock picks in each sector compared to the sector ETFs:

*Our Return is the weighted average of portfolio holdings in each sector. Contribution shows impact on total portfolio return.

Our sector allocation strategy delivered exceptional results this week, with Basic Materials leading the charge by generating +8.3% returns versus the sector ETF's +0.8% gain, contributing +0.6% to total portfolio performance. Technology holdings also outperformed significantly, posting +2.3% gains while the sector declined -1.5%, adding +0.3% to returns. The standout performance came from our materials and mining positions, which benefited from inflation-driven commodity strength. Healthcare was our only major underperformer, declining -8.9% versus the sector's +2.2% gain, though its small 1.1% portfolio weight limited the damage to just -0.1% contribution.

Earnings Scorecard

Our earnings scorecard shows solid execution with MNST delivering a clean earnings beat of $0.51 versus $0.49 expected while meeting revenue expectations. RY posted mixed results with earnings above consensus but revenue slightly missing estimates. These results demonstrate the quality of companies in our systematic selection process, with the majority continuing to execute well despite challenging market conditions.

Pit Stop

This week we're spotlighting one of our standout performers that exemplifies how our systematic approach identifies opportunities across market cycles.

AU - AngloGold Ashanti plc

Week: +11.8% | MTD: +37.6% | 6M: +119.8%

AngloGold Ashanti delivered exceptional performance this week, surging +11.8% as gold prices responded to persistent inflation concerns and renewed safe-haven demand. The South African mining giant has been a standout performer in our portfolio, generating massive +119.8% returns over the past six months as our models correctly identified the fundamental shift toward precious metals. With central banks continuing to accumulate gold reserves and inflation proving stickier than expected, AU represents our systematic approach's ability to capitalize on macro themes through individual stock selection. The company's diversified mining operations across multiple continents and improving operational efficiency make it well-positioned for continued strength.

Week Ahead

The coming week brings a packed calendar of high-impact events that could significantly influence market direction and our portfolio positioning.

Portfolio Earnings

No portfolio companies are scheduled to report earnings in the upcoming week.

Key Events

Friday delivers a data tsunami with employment and retail sales figures that will be crucial for Fed policy expectations. After this week's inflation surprises, markets will scrutinize these reports for signs of economic resilience or cooling. Our systematic models remain well-positioned to adapt quickly to any shifts in market dynamics, maintaining the disciplined approach that has driven our outperformance year-to-date.