Week in Review: May 15 - May 23, 2026

Performance Snapshot

This week AlphaWizzard returned +1.1%, performing in line with the S&P 500 (+0.9%) and just slightly behind the Nasdaq (+1.2%). Year-to-date, we continue to significantly outperform both benchmarks with +26.6% versus SPY's +9.3% and QQQ's +16.8%. Our disciplined risk management approach has maintained a maximum drawdown of just -8.8% since inception, demonstrating superior downside protection compared to both SPY (-9.1%) and QQQ (-11.8%).

The F1 Dashboard

Our quantitative model maintains a steady 49% equity exposure this week, unchanged from last week's positioning. We remain in CRUISING mode - think of this as maintaining a consistent pace on a straightaway, neither aggressively accelerating nor defensively braking. This measured approach reflects our model's assessment of current market conditions, balancing opportunity with prudent risk management as we navigate ongoing macro uncertainties.

Market Radar

Markets faced headwinds this week as April CPI data showed inflation accelerating to 3.8% year-over-year, exceeding the 3.7% consensus estimate and marking a nearly three-year high. This unwelcome inflation surprise initially sent markets lower as investors grappled with the implications for Federal Reserve policy. However, markets recovered as the week progressed, with Kevin Warsh being sworn in as the 17th Federal Reserve Chair on May 15th following a 54-45 Senate vote, bringing fresh leadership to the central bank.

The technology sector provided significant support to markets, driven by NVIDIA's blowout earnings report that showed EPS of $1.87 (beating estimates of $1.76) and revenue of $81.6 billion, up 85.2% year-over-year. This strong performance lifted memory stocks including Micron, which had earlier in the week declined alongside other memory names due to Samsung strike concerns. The strike was ultimately suspended after a tentative pay deal, alleviating supply chain worries. Meanwhile, energy markets remained volatile with U.S. crude topping $100 per barrel amid Middle East tensions.

Looking ahead, market sentiment appears cautiously optimistic despite inflation concerns. The release of FOMC minutes from Powell's final meeting revealed the debate among Fed officials, with four members dissenting on rate policy. Initial jobless claims remained stable at 209,000, indicating labor market resilience. With Memorial Day approaching and a heavy economic data calendar next week including GDP and PCE readings, markets are positioning for potential volatility as investors assess the Fed's next moves under new leadership.

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. Impact is each sector's NAV-weighted EOD impact in percentage points (pp). Σ Impact (+0.93pp) sits slightly below the headline NAV (+1.10pp); the 0.17pp difference reflects cash-sleeve carry, dividends in period, and intraday execution by the daily risk overlay (the model uses end-of-day prices, while live trades happen throughout the day).

Our technology holdings delivered exceptional performance this week, returning +3.0% versus the XLK ETF's +2.3%, contributing a substantial +0.89% to total portfolio returns. The sector benefited from NVIDIA's strong earnings and the resolution of Samsung strike concerns that had pressured memory stocks earlier in the week. Our industrials picks significantly outperformed with +3.4% versus XLI's +0.2%, while energy was our only underperforming sector with -2.1% returns versus XLE's +0.1% gain. The strong technology allocation, representing 29.5% of our portfolio weight, continues to be our primary driver of alpha generation. Despite energy headwinds from our oil-related positions, our sector selection and stock picking delivered meaningful outperformance across most major sectors.

Pit Stop

This week we're highlighting one of our standout performers that exemplifies our systematic approach to identifying quality growth opportunities in the technology sector.

MU - Micron Technology Inc

Micron Technology delivered solid gains this week, benefiting from the broader memory sector rally following NVIDIA's exceptional earnings report. The semiconductor memory giant, which produces DRAM and NAND flash memory, saw its stock rise +2.4% in overnight trading immediately after NVIDIA's results, as investors recognized the critical role of high-performance memory in AI infrastructure. Earlier concerns about Samsung's planned strike had pressured memory stocks at the start of the week, but the subsequent suspension of the strike action and tentative pay deal removed a key supply chain overhang. With AI demand continuing to drive unprecedented requirements for advanced memory solutions, Micron remains well-positioned in our technology allocation as one of the key beneficiaries of the AI infrastructure build-out.

Week Ahead

Next week brings a shortened trading schedule due to the Memorial Day holiday and a heavy slate of critical economic data that could significantly impact market direction.

Portfolio Earnings

No portfolio holdings are scheduled to report this week.

Market Holidays

Key Events

Thursday's economic data dump will be particularly crucial given recent hotter-than-expected CPI reading, with the Core PCE Price Index serving as the Fed's preferred inflation gauge. GDP and consumer spending data will provide insights into economic momentum, while durable goods orders will signal business investment trends. Our systematic approach remains well-positioned to navigate any volatility these releases may generate, with our current 49% equity exposure providing balanced participation while maintaining defensive flexibility.

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