If you are concerned by the red ink, we are not and can help you feel better after you read below. Here’s each strategy (please remember to check Black Diamond for your specific results):
LUL Performance
Start:
10/22/2025
Trading
By Strategy
Today:
11/21/2025
23 Days
Projected
Current Value Plus
Period Est.
Avg Daily
Quarterly
Paid/Accrued Dividends
Total Return
Total Return
Total Return
Win Rate
Portfolios
Alpha Convergence Conservative
99,313.56
-1.05%
-0.05%
-2.89%
43.48%
Alpha Convergence Aggressive
99,342.76
-0.98%
-0.04%
-2.70%
43.48%
Alpha Convergence
99,304.38
-1.16%
-0.05%
-3.17%
43.48%
Preserve (Benchmark is Conservative)
98,653.05
-0.74%
-0.03%
-2.03%
52.17%
Benchmarks
LUL Style
45.43
0.60%
0.03%
1.63%
S&P 500 plus Preferreds
436.72
-1.22%
-0.05%
-3.33%
RSP 500 plus Preferreds
128.84
-1.96%
-0.09%
-5.38%
Smart Beta
60.24
-1.95%
-0.08%
-5.35%
Multi-Manager
93.66
-0.73%
-0.03%
-1.99%
Conservative
82.40
-1.24%
-0.05%
-3.39%
On The Move
We do have a trade for Monday that affects all accounts – we are dropping VOYA for AIX (Assurant) as a quality upgrade. Although VOYA has not been horrible, they are running too high a risk after their recent report and AIX is simpler better quality. While some other stocks have fallen by double digits (META and DELL), we are not giving these up because we expect another AI story rally. The new tech is very compelling for those companies finding ways to benefit directly from increased AI adoption. Also, we are outperforming our indexes on the equity front which bolsters our confidence in these picks with our best days still ahead.
Market Conditions
How about “Yikes!” While not an awful week, we see increased choppiness until the market finds a more definitive story. Will the Fed cut interest rates? Will tariffs be rolled back for greater affordability? Has Marjorie Taylor Greene just announced she’s resigning in January, while Trump and progressive NYC Mayor, Mamdami, buddy up? These questions reflect the chaos driving current market volatility. To understand better how our portfolios have moved through this moment, I track our flagship Alpha Convergence as an equity only strategy from its first day as a live strategy on 6/27/25. Since our 10/22/25 rebalance, the equity side is up 1.02% through this week, while the S&P 500 (-1.21%) and the equal weight version that is our true benchmark (-2.01%) struggle to find positive footing. That represents the continuing quality of our stock picks from our new model under more challenging conditions. The negative noise in our portfolios is mostly coming from the preferred stocks, and that is perfectly normal when market gets choppier. As long as we do not need to sell these, we are perfectly fine as I noted in our education note this week. The market completely misunderstands these because no Wall St. analyst covers them. It’s one of our happy hunting grounds where we are compensated an extra 2.5% each year, on average, to bear the risk that we’ll have to sell when market conditions are bad. That’s a fine trade-off for most, if not all of us. If you have any concerns or fears about these, please contact me – I, (Mark Tennenbaum), have a lot of experience tearing these apart to understand why they are very good bargains even though they are not as safe as government bonds or better corporate bonds. We also monitor these very closely and exit these when we see the assets that back our preferreds growing riskier.
What It Means for Us
The economy is holding up fairly well despite the Administration’s inadvisable steps. Higher tax refunds early next year will give the consumer a needed shot in the arm, and we see AI continuing to gain speed as a very useful tool for us and many companies. The AI trade will go through pain at some point; and it will be worst for those with weak or negative cash flow. AI is an expensive proposition with potentially game changing results for those who succeed. We have our hooks in the water where it makes sense and defensive positions mostly after that. Having come through both a trash rally and its resulting choppiness, we feel our new edge is holding up its promises as our validation journey continues. CatShark giving thanks.
The CatShark Report November 23, 2025
If you are concerned by the red ink, we are not and can help you feel better after you read below. Here’s each strategy (please remember to check Black Diamond for your specific results):
On The Move
We do have a trade for Monday that affects all accounts – we are dropping VOYA for AIX (Assurant) as a quality upgrade. Although VOYA has not been horrible, they are running too high a risk after their recent report and AIX is simpler better quality. While some other stocks have fallen by double digits (META and DELL), we are not giving these up because we expect another AI story rally. The new tech is very compelling for those companies finding ways to benefit directly from increased AI adoption. Also, we are outperforming our indexes on the equity front which bolsters our confidence in these picks with our best days still ahead.
Market Conditions
How about “Yikes!” While not an awful week, we see increased choppiness until the market finds a more definitive story. Will the Fed cut interest rates? Will tariffs be rolled back for greater affordability? Has Marjorie Taylor Greene just announced she’s resigning in January, while Trump and progressive NYC Mayor, Mamdami, buddy up? These questions reflect the chaos driving current market volatility.
To understand better how our portfolios have moved through this moment, I track our flagship Alpha Convergence as an equity only strategy from its first day as a live strategy on 6/27/25. Since our 10/22/25 rebalance, the equity side is up 1.02% through this week, while the S&P 500 (-1.21%) and the equal weight version that is our true benchmark (-2.01%) struggle to find positive footing. That represents the continuing quality of our stock picks from our new model under more challenging conditions.
The negative noise in our portfolios is mostly coming from the preferred stocks, and that is perfectly normal when market gets choppier. As long as we do not need to sell these, we are perfectly fine as I noted in our education note this week.
The market completely misunderstands these because no Wall St. analyst covers them. It’s one of our happy hunting grounds where we are compensated an extra 2.5% each year, on average, to bear the risk that we’ll have to sell when market conditions are bad. That’s a fine trade-off for most, if not all of us. If you have any concerns or fears about these, please contact me – I, (Mark Tennenbaum), have a lot of experience tearing these apart to understand why they are very good bargains even though they are not as safe as government bonds or better corporate bonds. We also monitor these very closely and exit these when we see the assets that back our preferreds growing riskier.
What It Means for Us
The economy is holding up fairly well despite the Administration’s inadvisable steps. Higher tax refunds early next year will give the consumer a needed shot in the arm, and we see AI continuing to gain speed as a very useful tool for us and many companies. The AI trade will go through pain at some point; and it will be worst for those with weak or negative cash flow. AI is an expensive proposition with potentially game changing results for those who succeed. We have our hooks in the water where it makes sense and defensive positions mostly after that.
Having come through both a trash rally and its resulting choppiness, we feel our new edge is holding up its promises as our validation journey continues.
CatShark giving thanks.
Disclaimer
This newsletter is provided for informational purposes only and represents the current opinions of LUL Wealth Management (“LUL”). It should not be considered personalized investment advice or a recommendation to buy, sell, or hold any security or adopt any particular investment strategy. The information presented is based on sources believed to be reliable, but LUL makes no representation as to its accuracy or completeness.
Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. The investment strategies discussed may not be suitable for all investors. Each investor should review their investment objectives, risk tolerance, and financial situation with a qualified advisor before making any investment decisions.
Performance data presented reflects the specific LUL strategies described and may not reflect the performance of any individual client account, which will vary based on account-specific factors including timing of investments, additions or withdrawals, and individual restrictions.
This communication is not an offer to sell or solicitation of an offer to buy any securities. LUL is a registered investment advisor. For additional information about LUL, including fees and services, please refer to our Form ADV, available upon request.
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