| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | -0.19% | -0.19% |
Shelton's Equity Income Strategy delivered a gross return of 0.12% in Q1 2026, outperforming the CBOE BuyWrite Index by 1.04% during a volatile quarter marked by broad market pullback. The S&P 500 declined 4.35% as geopolitical tensions from Middle East conflict drove energy prices higher and triggered risk-off sentiment. The strategy generated 1.75% cash flow from option premiums and 0.41% from dividends. Top performers included Merck, Verizon, Lam Research, Akamai, and Exxon Mobil, while underperformers included Boston Scientific, Cognizant, Synchrony Financial, Disney, and Bank of America. The manager views underperformance as sector headwinds rather than company-specific issues and continues holding these positions as attractively valued relative to peers. Energy sector outperformed significantly due to oil price increases from Iran War. Looking forward, the manager believes the strategy is well-positioned to capitalize on heightened volatility, with oil prices and conflict duration being key market determinants alongside potential Fed rate cuts.
Equity income strategy using covered call options to generate income while maintaining exposure to dividend-paying stocks, positioned to benefit from increased market volatility.
Manager expects oil prices and Middle East conflict duration to be key determinants of market direction. Inflation and interest rate policy will be closely watched. Strategy positioned to benefit from increased volatility.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 13 2026 | 2026 Q1 | AKAM, BAC, BSX, COP, CTSH, DIS, LRCX, MRK, SYF, VZ, XOM | dividends, energy, income, Options, volatility | - | Shelton's covered call strategy outperformed during volatile Q1 2026 despite broad market decline, generating income from options premiums and dividends. Middle East conflict drove energy outperformance while tech and financials lagged. Manager maintains positions in underperformers viewed as attractively valued, believing the strategy benefits from increased volatility ahead. |
| Feb 9 2026 | 2025 Q4 | CAH, FAST, GM, GOOGL, HPQ, LRCX, MRK, PYPL, TMUS, VICI | dividends, financials, healthcare, income, Options, technology, volatility | - | Shelton's Equity Income Strategy delivered 18.50% net returns in 2025, outperforming its benchmark by over 11% through effective option overwriting that generated 7.97% in premium income. With markets at record highs entering 2026, the strategy is well-positioned to capitalize on expected volatility while providing downside protection amid policy uncertainty and AI investment sustainability concerns. |
| Nov 21 2025 | 2025 Q3 | AAPL, AMZN, ANET, BSX, CMCSA, CTSH, DVA, FTNT, GM, GOOGL, META, MSFT, NEM, NVDA, PHM, TSLA | AI, equity income, Options, rates, technology, Trade Policy, volatility | - | Shelton's Equity Income Strategy outperformed in Q3 2025, generating strong cash flow from options while benefiting from the AI-driven market rally. With the market at all-time highs facing tariff and Fed policy uncertainty, the strategy is positioned to capitalize on expected Q4 volatility through disciplined option writing and selective equity positioning. |
| Aug 22 2025 | 2025 Q2 | AAPL, APH, BMY, HPQ, JCI, META, MRK, MSFT, NRG, NVDA, OMC, ORCL, XOM | dividends, income, Options, tariffs, technology, volatility | - | Shelton Equity Income outperformed significantly in Q2 2025 despite dramatic tariff-driven volatility, generating strong option income while benefiting from the technology-led recovery. The strategy is well-positioned for continued volatility as markets navigate tariff impacts on inflation and Fed policy from record highs. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
OilEnergy sector saw significant outperformance driven by increasing oil prices from the Iran War. Oil prices being driven up dramatically due to Middle East conflict, with potential impact on inflation and interest rate policy being closely watched by investors. |
Oil Energy Iran Conflict Inflation |
VolatilityFirst quarter marked sharp departure from strong momentum with heightened volatility and broad market pullback. Market exhibited much more volatility since Middle East conflict started. Manager believes Equity Income strategy is well positioned to take advantage of current volatile market conditions. |
Volatility Options Market Risk | |
DividendsStrategy generated 0.41% from dividends during first quarter as part of the income-focused approach. Portfolio continues to focus on dividend-paying stocks as core component of the equity income strategy. |
Dividends Income Cash Flow | |
| 2025 Q4 |
AIThe market finished the quarter in positive territory after a turbulent stretch marked by policy uncertainty and concerns about the sustainability of AI-driven investment. Looking ahead, the AI trade will be in focus as investors may start to expect companies to show returns on the capital being invested in AI infrastructure. |
Artificial Intelligence Infrastructure Investment |
VolatilityThe fourth quarter delivered a continuation of the upside experienced since April, but hit a shaky November which marked the first down month for the S&P 500 since the tariff-driven selloff in the second quarter. The strategy is well positioned to capitalize on the volatility and buffer any pullbacks in the near term. |
Market Volatility Options Downside Protection | |
DividendsThe strategy generated 0.40% from dividends during the fourth quarter, bringing the full-year cash flow to 1.56% from dividends. This represents a core component of the equity income strategy's total return generation. |
Dividend Income Cash Flow Income Generation | |
| 2025 Q3 |
AIThe rally was sustained by enthusiasm for the AI trade, with the Magnificent Seven stocks reclaiming leadership after lagging earlier in the year. AI continues to drive market momentum and sector rotation. |
Artificial Intelligence Technology Growth Leadership |
VolatilityThe strategy is positioned to capitalize on market volatility through option writing. October is historically choppy, and both trade and monetary policy could exacerbate volatility in the final quarter. |
Options Risk Management Market Timing Hedging | |
RatesThe Federal Reserve cut rates by 0.25% in September, bringing the federal funds rate to 4.00-4.25%. The market is monitoring Fed comments for future rate cut paths amid economic uncertainty. |
Federal Reserve Monetary Policy Interest Rates Economic Policy | |
Trade PolicyThe market experienced volatility in spring due to tariff uncertainty, followed by a summer rebound. The expiration of temporary tariff pause in Q4 could impact inflation and earnings. |
Tariffs Trade Policy Inflation | |
| 2025 Q2 |
VolatilityThe second quarter brought dramatic market volatility with the S&P 500 plunging into bear market territory in March-April due to Liberation Day tariffs before staging one of the fastest recoveries in history. The strategy is positioned to capitalize on volatility and buffer pullbacks. |
Volatility Market Recovery Options |
Trade PolicyLiberation Day tariffs caused significant market disruption in March-April, briefly pushing markets into bear territory before a temporary pause triggered recovery. The market will closely watch tariff impacts on inflation and company financials going forward. |
Tariffs Trade Policy Inflation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| MRK | Our strongest performers this quarter were Merck & Co. Inc (MRK). We continue to hold the other names as we view them as attractively valued still relative to their peers. |
| VZ | Our strongest performers this quarter were Verizon Communications (VZ). We continue to hold the other names as we view them as attractively valued still relative to their peers. |
| LRCX | Our strongest performers this quarter were Lam Research Corp (LRCX). We continue to hold the other names as we view them as attractively valued still relative to their peers. |
| AKAM | Our strongest performers this quarter were Akamai Technologies (AKAM). We continue to hold the other names as we view them as attractively valued still relative to their peers. |
| XOM | Our strongest performers this quarter were Exxon Mobil Corp (XOM). We began transitioning from XOM to COP near the end of the quarter. |
| COP | We began transitioning from XOM to COP near the end of the quarter. |
| BSX | Our underperformers for the quarter were Boston Scientific Co (BSX). We continue to hold all the above, still finding them attractive relative to their respective peers and viewing the underperformance as mostly headwinds to their sectors rather than the companies directly. |
| CTSH | Our underperformers for the quarter were Cognizant Technology (CTSH). We continue to hold all the above, still finding them attractive relative to their respective peers and viewing the underperformance as mostly headwinds to their sectors rather than the companies directly. |
| SYF | Our underperformers for the quarter were Synchrony Financial (SYF). We continue to hold all the above, still finding them attractive relative to their respective peers and viewing the underperformance as mostly headwinds to their sectors rather than the companies directly. |
| DIS | Our underperformers for the quarter were Walt Disney Co (DIS). We continue to hold all the above, still finding them attractive relative to their respective peers and viewing the underperformance as mostly headwinds to their sectors rather than the companies directly. |
| BAC | Our underperformers for the quarter were Bank of America Corp (BAC). We continue to hold all the above, still finding them attractive relative to their respective peers and viewing the underperformance as mostly headwinds to their sectors rather than the companies directly. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
