FICH Public Equities is a systematic, long-only investment strategy that trades exclusively within the S&P 500 universe. The algorithm evaluates relative strength every month and automatically rotates capital into the most dominant stocks, maximizing exposure to leading macro trends while completely removing human bias.
Annual Returns — Fich Strategy vs SPY
1. Macro Overview
Over the past 30 days, U.S. equity markets posted solid gains despite volatility from the ongoing U.S.-Iran conflict, spiking oil prices, and rising Treasury yields.
The Nasdaq Composite rose approximately 4%, the S&P 500 gained around 2.7%, and the Dow advanced 1.5%, marking the first positive month for the major indices since May and the Dow’s fifth straight monthly gain.
Capital flows favored Energy (up ~7.4% with oil near $86–$90 per barrel), Information Technology (up ~6.4% on strong AI-related earnings from Nvidia, Salesforce, CrowdStrike, and Palantir), Healthcare (up ~4.9%, boosted by Moderna’s 156% surge on vaccine data), and Materials.
Defensive and rate-sensitive sectors lagged: Utilities fell ~4.8%, Industrials ~2.6%, and Real Estate also trailed as long-term yields rose (10-year Treasury approaching 4.8%).
Momentum signals supported allocations to Energy, Technology (especially software and AI beneficiaries), Healthcare, and Materials, reflecting strong earnings and commodity tailwinds.
Exposure was reduced in Utilities, Industrials, Real Estate, and parts of Consumer Staples due to weakening momentum and pressure from rising yields and rotation away from defensives.
Positioning stayed focused on AI-driven growth and energy while trimming duration-sensitive holdings.
A rotating but resilient market environment, with strong corporate earnings (notably in tech and AI) offsetting geopolitical risks and hawkish Fed signaling from Chair Warsh at Jackson Hole.
Higher yields weighed on longer-duration and defensive assets, creating a barbell-like market favoring select growth and commodity-linked sectors.
Fich Monthly Returns (2012 – present)
2. Last month overview: Fich Equities vs the market
In August 2026, Fich Equities strategy returned +1.85% in August, against +2.68% for the S&P 500.
Stepping back to the year-to-date picture:
3. The portfolio at this rebalancing: bought, sold, and held
On September 2, 2026, the system closed 1 position, opened 1 new position and held 10 from the previous months, leaving the portfolio at roughly 1.54% cash.
The algorithm systematically closes underperforming stocks while holding positions with strong momentum.
Closed trades, return on each closed position:
New Trades:
Current portfolio:
Portfolio update
STX (Seagate Technology) - Weight 21.06%
Seagate reported fiscal Q4 2026 revenue of $3.6 billion, up 48% year-over-year, with record non-GAAP gross margin of 52.7% and EPS of $5.71, exceeding guidance amid robust cloud and AI-driven demand for high-capacity nearline HDDs. Full-year fiscal 2026 revenue reached $12.2 billion (+34%), with record free cash flow of $3.1 billion, debt reduction of $1.4 billion, and $810 million returned to shareholders. HAMR and Mozaic 4+ products are ramping successfully, with nearline exabyte shipments allocated well into 2028-2029. Guidance for fiscal Q1 2027 calls for $4.1 billion revenue (±$100 million) and non-GAAP EPS of $7.30 (±$0.20).
MU (Micron Technology) -Weight 16.12%
Micron delivered record fiscal Q3 2026 results with revenue of $41.46 billion (+346% YoY) and adjusted EPS of $25.11, far exceeding estimates, driven by explosive AI data center memory demand, tight supply, and pricing strength across DRAM and NAND. The company signed $22 billion in multi-year strategic customer agreements with take-or-pay terms. Fiscal Q4 guidance is for ~$50 billion revenue (±$1 billion), ~86% gross margin, and $31 EPS (±$1). All segments posted massive growth, with cloud and data center leading; operating cash flow hit $25.4 billion. Supply constraints are expected to persist for at least two years.
WDC (Western Digital) - Weight 16.11%
Western Digital posted fiscal Q4 2026 revenue of $3.75 billion (+44% YoY) and non-GAAP EPS of $3.56, with gross margin expanding to 54.4% on strong data center HDD demand, favorable pricing, and mix. Full-year fiscal 2026 revenue was $12.9 billion (+36%). The Sandisk flash spin-off was completed in early 2025. Guidance for fiscal Q1 2027 is $4.1 billion revenue (±$100 million) and non-GAAP EPS of $4.00 (±$0.15), with 55-56% gross margin. 40TB ePMR drives are in volume production, with HAMR ramps planned for 2027; dividend was increased 20%.
SNDK (Sandisk) - Weight 9.96%
Sandisk, spun off from Western Digital in February 2025, reported fiscal Q4 2026 revenue of $8.97 billion (+372% YoY) and non-GAAP EPS of $39.25, with gross margin at 84.6% fueled by datacenter SSD/NAND surge (now ~33% of revenue, up from 12% a year prior) and pricing. Full-year fiscal 2026 revenue hit $20.25 billion (+175%). Five new multi-year supply agreements secure over a third of FY27 bits with $42 billion minimum revenue. Guidance for fiscal Q1 2027 is $10.3-10.8 billion revenue and $44-46 non-GAAP EPS; $6 billion buyback authorized after debt repayment.
TER (Teradyne) - Weight 7.26%
Teradyne achieved record Q2 2026 revenue of $1.329 billion (+104% YoY) and non-GAAP EPS of $2.47, with AI-related demand exceeding 60% of sales and semiconductor test (especially memory and compute) driving 128% growth. First-half revenue nearly doubled year-over-year. Q3 guidance is $1.2-1.3 billion revenue and $1.85-2.15 non-GAAP EPS. New UltraFLEXplus instruments launched for AI/data center testing; robotics and product test also grew. Backlog remains healthy with visibility into 2027 growth.
INTC (Intel) - Weight 5.89%
Intel reported Q2 2026 revenue of $16.1 billion (+25% YoY) and non-GAAP EPS of $0.42 (beating estimates), with Intel Products (especially DCAI servers) up 28% on higher ASPs and mix. Foundry progress includes 18A ramp and 14A momentum. Capex raised to $20 billion for 2026. Q3 guidance is $15.8-16.8 billion revenue and $0.38 non-GAAP EPS. Supply constraints persist; AI compute demand is accelerating across CPUs, ASICs, and packaging.
LRCX (Lam Research) - Weight 5.55%
Lam Research posted record fiscal Q4 2026 (ended June) revenue of $6.72 billion (+30% YoY) and non-GAAP EPS of $1.82, with NAND revenue doubling sequentially. Full-year fiscal 2026 revenue was $23.23 billion (+26%). WFE spending outlook raised to low $150 billion for calendar 2026. September quarter guidance is $8.1 billion revenue (±$400 million) and $2.15 EPS (±$0.15). Customer support hit nearly $2.5 billion; dividend increased 27%. Strong AI-driven capacity and technology transitions support 2027 outperformance.
AMD (Advanced Micro Devices) - Weight 5.19%
AMD delivered Q2 2026 revenue of $11.5 billion (+50% YoY) and non-GAAP EPS of $1.66, with data center more than doubling to $6.7 billion (58% of total) on EPYC CPUs and Instinct MI350 GPUs. Multi-year GPU deals signed with OpenAI and Meta (up to 6 GW each). Q3 guidance is ~$13 billion revenue (±$300 million) and ~56% non-GAAP gross margin. Client/gaming and embedded also grew; cash ended at $13.1 billion. Data center expected to more than double again in 2027.
DELL (Dell Technologies) - Weight 4.44%
Dell reported fiscal Q2 2027 (ended July) record revenue of $47 billion (+58% YoY) and non-GAAP EPS of $7.04 (+203%), with ISG up 89% to $31.8 billion. AI-optimized servers generated $16.4 billion revenue, $60.9 billion in orders, and $95 billion backlog. Traditional servers/networking +122%. Full-year FY27 guidance raised to $192 billion revenue (+69%) and $25.50 non-GAAP EPS. Q3 outlook: $49 billion revenue and $6.50 EPS. Operating leverage strong as expenses fell to 8.5% of revenue.
LITE (Lumentum) - Weight 3.89%
Lumentum achieved fiscal Q4 2026 revenue of $1.01 billion (+109% YoY) and non-GAAP EPS of $3.23, with operating margin at 36.6%. Full-year fiscal 2026 revenue was $3.01 billion (+83%). Cloud/AI optics (800G/1.6T transceivers, OCS, CPO lasers) driving growth; systems segment +123%. Q1 FY27 guidance: $1.225-1.275 billion revenue and $4.05-4.35 non-GAAP EPS (39.5-40.5% operating margin). Partnerships and capacity expansion underway for AI infrastructure.
MRVL (Marvell Technology) - Weight 2.99%
Marvell reported fiscal Q2 2027 revenue of $2.739 billion (+37% YoY, record) and non-GAAP EPS of $0.94, with data center up 46% to 79% of sales on custom silicon, electro-optics, and switching. FY27 revenue outlook raised to ~$12 billion; FY28 to ~$18 billion. Celestial AI acquisition completed for photonic interconnects; NVIDIA partnership announced. Q3 guidance: $3.15 billion revenue (±5%). Broad-based AI bookings remain robust with accelerating custom business in H2.
4. Multi-year track record
As of yesterday, that hypothetical $1,000 was worth $73,592.77 in the strategy, versus $7,730.35 in S&P 500.
Fich Equities Strategy vs. SPY - growth of $1,000 since inception (log scale).
Disclaimer: Past performance is not indicative of future results. All strategy performance metrics and stated returns are net of a 0.10% commission fee per trade. This letter is for informational purposes only and does not constitute investment advice. For comprehensive historical data and complete execution logs, visit fich.ai.