I’m honored to share that the I/O Fund has delivered 326% cumulative returns since inception in May 2020, representing  a 4.26X multiple. On an annualized basis, returns have averaged 29.2%, outpacing both broad market indexes plus many of Wall Street’s highest-ranking hedge funds.  

You can find our official 2025 Returns Press Release here. 2025 Returns Press Release here. 

5-Year Relative Performance vs. Peers 

The I/O Fund’s annualized returns compare favorably with some of Wall Street’s most established investment teams. 

Although we launched mid-year in 2020 on May 9th, the comparison below gives a general idea of what a strong annualized return would be over the past 5 years.  

To provide additional context, we present both our 2020–2025 and 2020–2025 annualized returns in the chart below, each of which ranks competitively within this peer set. 

Source: LevelFieldsLevelFields

Based on cumulative returns, the I/O Fund would have hypothetically ranked #3 among technology-focused ETFs and mutual funds. While the portfolio was not exclusively invested in semiconductors, increased allocations in a few semiconductor leaders contributed meaningfully to performance.  

Ultimately, a stock-picking approach was able to perform comparatively to a segment of the technology market that was rather difficult to outperform, particularly relative to tech portfolios overweight the Magnificent 7, software, and other less complex subsectors. 

Source: YCharts and Yahoo FinanceYCharts and Yahoo Finance

2025 Performance Review 

In 2025, the I/O Fund achieved a 37% portfolio return. These returns and the cumulative listed above combine equities and cryptocurrency with Bitcoin down (5%) and altcoins down as much as (40%). 

Source: Reuters and BloombergReuters and Bloomberg

When excluding cryptocurrency, the team’s equity strategy delivered a staggering 56% return, a result that ranks the I/O Fund team among the highest-performing investment teams in the United States on both an annual and cumulative basis.  

To compare with ETFs last year, we show the I/O Fund’s equities-only performance, as ETFs generally reflect more concentrated thematic exposure. The returns shown below reflect the performance of our AI equity strategy in 2025 and provide a more appropriate comparison to similar thematic approaches 

Source: YCharts and MorningstarYCharts and Morningstar

Relative Outperformance vs. Indices 

Since inception, our portfolio has outperformed the S&P 500 by 192% and has outperformed the Nasdaq-100 by 152%. The last several years have demanded precision as markets rotated sharply from cloud computing toward artificial intelligence, valuations reset, and major indices delivered consecutive strong years—conditions that have made sustained outperformance exceptionally difficult for active managers. 

Additionally, when we look at how the I/O Fund compares to popular institutional all-tech funds, we have a notable lead of 294% since our inception in May 2020.  

An investment of $10,000 with the I/O Fund's picks at inception versus other all-tech portfolios would see a portfolio value of $42,552 with IOF versus $13,192 with institutional tech-focused portfolios. The difference in value is 223%.

2025 Winning Positions Overview: 

Where the I/O Fund further differentiates itself is in the number of individual positions that outperform the broader indexes: 

• 2023: Five positions returned over 100%, with seven positions outperforming the Nasdaq 
• 2024: Ten positions outperformed the Nasdaq-100, with six exceeding 100% returns 
• In 2025, we had 11 positions outperform the Nasdaq-100, while two exceeded 100%. One position returned over 300%. 

Some of these positions were held for the entire year, while others were tactically closed, allowing us to lock in realized gains that exceeded the Nasdaq-100's performance. 

Additionally, our biggest winners were the result of our risk management overlays providing us with ample cash to strategically buy stocks into the Q1 selloff. Being tactical to start the year and then deploying our cash into February – April allowed us to realize gains that in some cases exceeded the stock’s annual performance.  

Below, we provide additional details on our entries, exits, adds, and trims — all of which were communicated through real-time trade alerts to our Premium Members. 

Positions that we held for the entirety of 2025 that exceeded the NASDAQ-100: 

• Nvidia (NVDA) +37% 
• Advanced Micro Devices +75%   

The above does not include all trims and buys for the entirety of 2025. 

Positions that we opened in early 2025 and held for the year: 

• Applovin (APP) +70% – our lowest entry ending the year +141% 
• Bloom Energy (BE) +305% – our lowest entry ending the year +422%  
• Astera Labs (ALAB) +140% – our lowest entry ending the year up +226%

Positions that we tactically opened and/or closed in 2025 for a realized gain that surpassed the NASDAQ-100's 2025 return:  

• Coherent (COHR) +33%  
• Core Scientific (CORZ) +93% 
• Coinbase (COIN) +40% 
• Meta (META) + 51%   
• Innodata (INOD) +79% with one trade at +94% 
• Taiwan Semiconductor Manufacturing Co (TSM) + 33% 

Returns are calculated using either the average cost basis of the initial buys that built the core position or the year’s opening price, and the average sell price across the closing trades or the closing price for the year.  

Overview of Notable Winners in 2025 

Nvidia (NVDA) 

Leading up to the release of the Hopper GPUs, we were net buyers of Nvidia in 2021 through early 2023. On average, it was held as a 15% position throughout 2022 – 2023. As we moved into 2024, Nvidia was allowed to exceed this allocation to become our first ever 20% position. 

However, in mid-2024, we shifted our focus by looking more deeply at suppliers for Nvidia. Although the stock remained a core holding; we used our oversized allocation to raise cash at periods of perceived risk. Most notably, we talked about Nvidia hitting the $90 – $80 region for months before we finally got there in April of 2025.  

In February of 2025, we cut half of our position with an average cost basis of $130.88. We were then able to grab shares of Nvidia roughly 30% lower at $94.48 on April 4th and again at $87.99 on April 7th. The low for the year was $86.60.  

Bloom Energy (BE) 

We first covered surging power demand from AI data centers in June 2024, with Bloom Energy quickly rising to the top of our list for its ability to solve the critical time-to-power constraint. Like ALAB below, it was a stock we wanted to own but preferred to hold off considering the broad market risk we warned our readers about in early 2025.  

We made three initial buys in BE that defined our core position. Two of them happened on the April 4th low at $17.04 and $16.64. These two buys made Bloom a 5% position in our portfolio. We then added another 3% to BE on July 24th at $32.93, making BE an 8% position before our thesis was proven correct.  

We took tactical gains in BE along the way, considering that it became one of our largest holdings due to relative performances. We also closed BE for 3 trading days due to technical support breaking, but quickly bought it back once it was proven to be a false breakdown.  

We remain steadfast in Bloom Energy’s positioning within the AI energy demand and will continue to tactically manage this winner as we perceive risks unfolding. As of today, it is one of the best calls in I/O Fund history, alongside Nvidia.  

Astera Labs (ALAB) 

Astera Labs is a stock that has responded well to technical analysis, as illustrated in the chart below. It went from not being in our portfolio as we moved into 2025, to becoming an 11% position around the April lows. This gave us an average cost basis of $69.42. 

We then sold 1/3 of this position in September, with an average cost basis of $205.27, locking in 295% returns, while also freeing up some cash. This was just before ALAB sold off 50% in just over 2 months.  

With what we know today in terms of PCIe persisting across future GPU generations and custom silicon systems, we plan to add to Astera during this pullback. 

Bitcoin (BTCUSD) 

The below chart shows the areas of accumulation and distribution for the Bitcoin bull market that started in late 2022. We lean heavily into technical analysis to accomplish the below feat, which naturally makes us contrarians when it comes to crypto. We were exceedingly bullish in Bitcoin, buying most dips in early 2023 – October 2024. When the herd finally started getting bullish on Bitcoin due to various narratives, that’s when we shift into a distribution mode, trading the final swings in Bitcoin’s bull run.  

For those that have been with us during this period, you’ll remember how we took Bitcoin from a 10% position down to a 1% position between April – December 2025. We locked in gains between $85,000 – $113,000, making the multi-year bull run in Bitcoin one of our top actively managed positions in our firm’s history.

Meta (META) 

Meta is a stock that we have been closely tracking due to its ability to easily integrate AI across its ad platform for an uplift in advertiser ROI. The company is sitting on a treasure trove of contextually rich data from billions of social media users. More impressively, Meta is currently number two in AI revenue despite spending less on capex than its counterparts.

Like many of the stocks we wanted to own in 2025, due to perceived market risk, we patiently waited for volatility to show up. We built a 7% position with two buys on April 7th at $488.97, and again on April 21st at $482.48. Meta’s low for the year was $478.72. 

When it became obvious that the market was starting to penalize hyperscalers for their large Capex spend, we decided to take gains in Meta, locking in a combined 51% realized gain before the stock dropped. We’ve since begun rebuilding a new position at lower prices.

Verified Performance 

Our performance is reviewed and verified by an independent accounting firm. Under the terms of our engagement, the firm’s engagement letter is not to be publicly distributed. In accordance with standard practices, the engagement letter and full performance review are made available exclusively to paying members and are hosted behind our paywall. 

The I/O Fund retains ownership of the verified performance results and does not authorize the redistribution of the confidential engagement letter or performance review outside of the member area. While we may reference verified performance figures publicly, access to the underlying engagement documentation is limited to our clients in accordance with our agreement with the accounting firm. 

Why Real-Time Trade Alerts Matter 

Real-time trade alerts are sent to members the moment we decide to buy, sell, trim, or add to a position. That may sound straightforward, but in practice, it’s one of the most demanding ways to manage a portfolio.  

Every decision is recorded the moment it’s made. That level of transparency places meaningful pressure on the portfolio team, which is exactly the point. It’s the same standard registered fund managers are held to when they file trades, yet it’s rarely offered in retail investment research. 

This accountability extends beyond trade alerts. Our analysts aren’t just responsible for identifying opportunities; they must also determine position sizing, support ongoing portfolio management, and adapt as conditions change. A recommendation doesn’t end at the buy, rather it continually evolves through adds, trims, and exits as the fundamentals, product story or technicals shift. 

There’s a reason most research platforms avoid real-time alerts, active position management, and detailed transparency: the more granular the reporting, the higher the stakes. When decisions are logged instantly, there’s nowhere to hide. 

Every portfolio team makes mistakes. The difference is that by making mistakes publicly, it has sharpened our decision-making and strengthened our discipline over time. 

Risk Management Isn’t Optional 

In the tech sector, risk management is just as important as stock selection. Hedging, including raising significant cash or reducing exposure, is psychologically difficult and often avoided. Markets tend to trend higher over time, and downside risk behaves very differently on the short side than it does on the long side. 

While hedging decisions should always be reviewed with a financial advisor, many members use our positioning changes as clear risk-on and risk-off signals. From day one, we made a deliberate choice: we would not publish research without pairing it with real risk management. 

Again, that decision isn’t common in individual investing, but we believe research sites should be held to the same standard as professionals. 

Verified Returns and Accountability 

One of the biggest gaps in retail investing is the lack of verified performance. Institutional investors don’t take claims at face value— they require proof. Hedge funds are required to report returns precisely because it reduces posturing and selective storytelling.  

We apply that same mindset here. To date, the I/O Fund has invested over $210,000 into accountability and transparency for members since inception.  

Early on, we used a forum-based system for trade alerts. By 2021, we transitioned to dedicated SMS and email software systems using Twilio and Mailchimp — tools designed to minimize outages and delays. This alone costs $30,000–$40,000 per year, depending on trading activity. 

In addition, we engage an independent accounting firm in San Francisco to mathematically review and verify performance across both our equity and crypto accounts. Each audit takes several months and costs $4,500 to $5,500. To date, we’ve completed seven audits, totaling $32,500. 

Conclusion: 

Over the past year, we delivered 11 positions that outperformed the Nasdaq-100, continuing a multi-year trend of identifying winners early. Many of our biggest winners were built at prices below the January 1 opening levels, allowing us to realize returns that exceeded the stock’s annual performance. In addition, we drastically cut back our crypto positions to stave off losses starting in August, despite many crypto influencers calling for aggressive price targets.  

This consistency helped extend the portfolio’s cumulative return to 326% since inception in May 2020, with annualized returns averaging 29.2% over that period. Across thousands of portfolio options, these results place us firmly among the top-performing investment strategies in the United States. 

We’re deeply grateful for the trust each of you give us. We take the responsibility of providing our Members early, actionable research tools just as seriously as the pursuit of the upside. Thank you for your continued support and confidence. As we close out 2025, we’re fully focused on the work ahead, as we seek to deliver thoughtful, early research, disciplined execution, and clear risk management in the years to come.

Please note: The I/O Fund conducts research and draws conclusions for the Fund’s positions. We then share that information with our readers. This is not a guarantee of a stock’s performance. Please consult your personal financial advisor before buying any stock in the companies mentioned in this analysis.

Recommended Reading:

• 2024 Full Year Audited Returns
• 2023 Full Year Audited Returns
• 2022 Full Year Audited Returns
• 2021 Full Year Audited Returns
• 1-Year and YTD Audited Returns for 2021

It is with great pleasure that I present the I/O Fund’s 2024 audited returns of 34.6%, leading to a spectacular outperformance of 219% since inception when compared to popular tech ETFs. When compared to the broader indexes S&P 500 and Nasdaq-100, we outperform by 109% and 82% respectively, since our portfolio’s inception in May of 2020. 

These have been some of the most variable years on record when considering the immense volatility tech has seen, the market’s rotation out of cloud and into AI – which required meticulous analysis to capture, plus a strong two-year back-to-back performance from the S&P 500 and Nasdaq-100. This has made it particularly challenging for stock pickers to compete. Yet, the I/O Fund was able to defy the odds to deliver what is one of the highest 5-year cumulative performances on record. 

We issued a press release on Wednesday entitled “I/O Fund Dominates Tech Sector with a Staggering 210% Cumulative Return in Less than 5 Years”

If you had invested $10,000 with the I/O Fund's picks versus other all-tech portfolios at inception, the difference would be a portfolio value of $31,026 with IOF versus $9,737 with institutional tech-focused portfolios. The difference in value is 219%. 

I/O Fund Offers a Staggering Lead in the Tech Sector 

The I/O Fund actively manages risk through hedging and raising cash, therefore, the closest comparison in terms of style would be hedge funds. Our current performance since inception places us as one of the top-performing actively managed portfolios in the world, with an annualized return of 27.6% since May of 2020. Our ranking would be #2 in the United States, ahead of famous fund managers such as Pershing Square, Tiger Global and Citadel.   

 *While our track record has been exemplary, past results are not a guarantee of future outcomes. Please read our terms and conditions here.terms and conditions here.

I/O Fund is a leading portfolio specializing in tech stocks – if we were a Hedge Fund, our performance would be ranked #2 in the US. We have consistently outperformed some of the biggest hedge funds like Pershing Square, Tiger Global Management, and Citadel. Source: Levelfields and ChartartisanLevelfields and Chartartisan 

Even when considering leveraged ETFs, which tend to use future contracts to double the returns (and losses) of the underlying index, we would still place in the top 10 since our inception. This is remarkable considering SPX and the Nasdaq-100 had strong back-to-back annual performances.  

Notably, leveraged ETFs are typically used as trading vehicles rather than as long investments. Considering they utilize future contracts, the longer they are held the more they deviate from their expected result. Therefore, Ark is the closest competitor to what we offer as an actively managed all-tech portfolio. As depicted in the chart above, our lead over Ark is 219%. 

I/O Fund’s cumulative returns of 210% notably outperformed some of the most popular tech stocks ETFs like XLK by 65%. Source: YCharts and InsiderMonkeyYCharts and InsiderMonkey 

Further, when we combine the entire universe of ETFs with Mutual Funds, which is another long option for investors yet are not exclusive to tech nor do they hedge, we would rank #8. 

The above list shows that I/O Fund is a top-performing tech portfolio with only Fidelity ranking higher in cumulative returns among tech-focused ETFs and mutual funds. Source: YCharts and InsiderMonkeyamong tech-focused ETFs and mutual funds. Source: YCharts and InsiderMonkey 

When you consider these portfolios have billions of assets under managementbillions of assets under management and are managed by those considered to be the best investors in the worldthe best investors in the world, we feel what we offer is of immense value.

2024 was the Year of Consistency: 

It has been a wild ride; yet we have strived for consistency. In 2024, we had ten positions outperform the Nasdaq-100 and S&P 500. This follows seven positions beating the broad indexes last year in 2023.   

The positions that beat the indexes this year include: NFLX, CRWD, NET, BTC, ETH, SOL, LINK, COIN, SMCI, NVDA.  

Highlights included holding Nvidia as a top position and then trimming ¼ of the position on June 13th with SMH topping in July. We further discussed our strategy to reduce exposure to AI semis in Q3 and Q4, spotting sector-wide weakness, which helped to minimize losses. 

We kept Bitcoin as a top 3 allocation while providing 7 buy alerts, all of which closed the year up 50%+. Our combined realized returns on Super Micro were 243% while utilizing risk management to sidestep volatility. CrowdStrike was similar, where we captured outsized 87%, yet closed the position before the stock saw a volatile drawdown. We also closed Solana for a 99% quick gain and Netflix for a 164% realized gain in 2024. You can find more highlights on our 2024 trading history in Knox’s section below. 

A Few More Important Stats About our Performance: 

• The I/O Fund outperformed the S&P 500 by 109% and outperformed the Nasdaq-100 by 82%. 
• In 2024, the I/O Fund returned 35%, outperforming the S&P 500 by 11% and both the Nasdaq-100 and Invesco QQQ ETF by 10%. 
• Since inception, the I/O Fund has maintained a lead of up to 219% over institutional technology portfolios.  
• In 2024, I/O Fund posted a 35% return, significantly outperforming popular tech ETFs, which recorded an 8% return over the same period. On a cumulative basis, the results translate to a remarkable 219% outperformance compared to competing tech portfolios. 

2024 Winning Positions Overview: 

By Knox Ridley 

We had 10 positions outperform the NASDAQ-100 in 2024. Half of these positions were held for the entire year, while some were tactically closed, which allowed us to log a realized gain that exceeded the NASDAQ-100.  

Positions that we held for the entirety of 2024 that exceeded the NASDAQ-100: 

• NVDA +172%
• Bitcoin +121% 
• Ethereum +47% 
• Chainlink +34% 
• NET +32% 

Positions that we tactically opened and/or closed in 2024 for a realized gain that surpassed the NASDAQ-100's 2024 return: 

• Super Micro: +243% 
• Solana: +99% 
• Coinbase +67% 
• Netflix +164% 
• CrowdStrike +87% 

*Calculations are based on the average opening price and the average closing price for each position.

Overview of 2024’s Biggest Winners 

Nvidia +172% 

Leading up to the release of the Hopper GPUs, we were net buyers of Nvidia in 2021 through early 2023. On average, it was held as a 15% position throughout 2022 – 2023. As we moved into 2024, Nvidia was allowed to exceed this allocation to become our first ever 20% position. We began taking heavy gains in the $130 – $140 region. Today, we are waiting for better prices to begin accumulating again. 

Bitcoin +121% 

We have been systematically accumulating Bitcoin since early 2023. In 2024, we issued seven buy alerts, all of which closed the year up more than 50%. We also began taking significant gains in our Bitcoin position between $80,000 – $106,000. 

Super Micro +243% 

Super Micro was a high conviction play in 2023, which we closed for a sizable gain around the 2024 top. We attempted to re-establish a small position in mid-2024, but decided to close that attempt for a loss due to the accounting issues SMCI was facing.

Netflix +164% 

NFLX was a high conviction stock that we began accumulating at the same moment that Wall Street’s best, such as Bill Ackman, were closing their positions. We felt the Street had this stock wrong. With multiple tactical buys, the average opening price to the average closing price came out to a 164% realized gain in less than 2 years.  The decision to close it was based on a combination of fundamental issues as well as technical targets being reached. 

Solana +99% 

While Bitcoin was clearly in a strong uptrend, we decided to play the momentum in crypto through Solana. With an opening average cost basis and closing average cost basis in 2024, we logged a relatively quick 99% in less than a year.  

CrowdStrike +87% 

We opened CrowdStrike in early 2023 and began taking gains in early 2024. We ended up closing the entire position for a realized gain of 87%, just before the vertical drop took CRWD down 41% from our final closing price. This was due to the fundamentals team listening closely to the earnings call and sensing weakness. 

Our Performance: 

Below is the engagement letter from the firm that reviews and verifies our performance. Our terms and conditions with the accounting firm state that this engagement letter is to only be shared with paying customers to avoid advertising another firm’s IP and services. For that reason, our performance letter resides behind our paywall.  

The I/O Fund owns the performance review and we do not authorize our customers or any person on our site to share a confidential engagement letter or performance review outside of our paywall. As the owner of the report, we will at times market our performance number outside of the paywall. 

With that said, any paying customer can access the engagement letter which is posted on io-fund.com for this purpose.

Key Points on How the I/O Fund is Different 

Real-time trade alerts are sent to our members the minute we decide to buy, sell, trim or add to a stock. For those who may not be aware, this is extremely challenging to do as it combines the two most advanced forms of portfolio management. 

• One of the most advanced forms of portfolio management is real-time trade alerts. This places immense pressure on a portfolio manager as the stakes are high to record what you do every second in real-time. To voluntarily choose to have the highest level of accountability in retail is nearly unheard of, yet registered fund managers are required to do this and file their stock trades.  
• Logging trades in real-time also places immense pressure on the analysts at the I/O Fund, as well, who are not allowed to simply choose a stock but must also determine the allocation for the stock. After recommending a stock, the analysts must help the portfolio manager actively manage the position, which can change at any time. 
• Hedging up to 100% of a portfolio is also a large psychological hurdle, and traditionally a risky one. Markets spend the vast majority of their history in uptrends, for one. Secondly, the amount you can lose on a short is literally infinite, to where one’s downside risk is capped at 0 on the long side. Although hedging must be reviewed with each Member’s financial advisor, many of our members simply use the information as a critical risk-on and risk-off signal.  

These are rare offerings in stock investing research. However, since day one – we refused to publish reports without risk management.  

It’s only natural for stock investing research sites to want to ease the pressure of having to report in real-time – yet we do not think investors should accept a lower standard than professionals who must report their trades.  

There is a reason most services do not provide this level of transparency and activity. The more granularity that is offered, the more skill is required. The stakes are much higher when what you do is recorded the minute the action is taken, but overall, having the highest level of accountability possible has made the I/O Fund much sharper investors. 

Verified Returns 

In addition to a lack of risk management tools, I believe a lack of verified returns in the retail space contributes to the losses this investor type experiences. Smart money is careful about who they consider a good investor — they do not take someone’s word they are a good investor; they make the investors or firms they follow prove it. Every single hedge fund must report their returns, which reduces the chances of posturing. 

How the I/O Fund Sets a High Bar for Accountability 

Over the past few years, the I/O Fund has invested over $175,000 into accountability and transparency for our members. When we launched in July of 2019, for the first year or so, we used a forum hosted by Tribe for our trade alerts for a cost of about $10,000 per year, but by January of 2021, we had migrated to SMS and email tools that were the least likely to experience an outage for our real-time trade alerts (Twilio and Mailchimp). This costs us $30,000 to $40,000 per year, depending on our trading frequency.  

In addition to this, we use an auditor from a large firm in San Francisco to mathematically review and verify the performance of our I/O Fund portfolio trading account and crypto account. The process is quite extensive and it takes up to four months to complete. This costs $4,500 per audit and we’ve completed six audits for a total of $27,000 spent on this process. Accountability is expensive but we feel it’s worth it. 

Conclusion: 

We started with a cloud-focused portfolio in 2020 that captured the hypergrowth market during the pandemic, then we utilized risk management to stave off losses in 2021 and 2022, before pivoting to a high AI allocation of 45% entering 2023.  

This past year, in 2024, we’ve proven our consistency by offering ten positions that beat both the S&P 500 and the Nasdaq-100 compared to seven positions the previous year. We held large allocations in some of the market’s biggest winners in 2024 (Nvidia, Bitcoin, Super Micro in H1, Coinbase in H2, plus crypto). 

The Consistency of 2024 helped propel our cumulative return from 131% in less than four years to 210% in less than five years. Not only do we easily place in the 90th percentile but we are in the top 10 in nearly every category out of thousands of portfolio options. When looking at hedge funds, we would place as #2 with our annualized return of 27.6% — beating out some of Wall Street’s best investors.  

The I/O Fund's mission since inception has been to provide institutional-level research and tools to retail investors, and the results have shattered our expectations. What we have accomplished is no small feat, and our team reflects on these results with immense gratitude.  

Many of you supported us from early days and stuck with us through immense volatility –   we hope your unwavering commitment to us has been rewarded many times over. Others are newer to our site and have stumbled upon a more polished team than when we first started (or should I say, a more humbled team). If you are newer to the I/O Fund, then I can assure you that no team takes their role more seriously in terms of delivering our very best every single day. 

We want to thank you for your business and your vote of confidence in our abilities. We are honored to officially close out 2024 and to now turn our full attention to delivering for you in 2025 and beyond. 

Please note, past results are not a guarantee of future outcomes. Reference our terms and conditions here.terms and conditions here.

New Discovery Tier – Now Live: 

We are pleased to announce the launch of our new Discovery tier, an endeavor we have been diligently working toward for nearly a year. Our team is limited in the number of positions we can own with 10 positions at a minimum, and up to 20 positions maximum. We also may have a different risk profile than many of our members, which means that we have passed on some notable winners over the years. There are many strong-performing stocks in the market to consider and our new tier is designed to surface these ideas so our members can access a wider range of research that goes well beyond the I/O Fund’s portfolio. 

Here is some coverage we have published over the past month on the Discovery tier: 

• A high beta stock with 21X growth potential from supplying power quickly to key AI hyperscalers 
• Power management integrated circuits (PMICs) company with signals for strong growth in H2  
• Nuclear and natural gas supplier for AI data centers 
• Coming soon: Biggest incoming IPO in the AI sector  

Current members can get 50% off Discovery for just $199 through April 10th with code SAVE200DISC. Click the link to send a request to Customer Service to subscribe. Link

Please note: The I/O Fund conducts research and draws conclusions for the Fund’s positions. We then share that information with our readers. This is not a guarantee of a stock’s performance. Please consult your personal financial advisor before buying any stock in the companies mentioned in this analysis.

Recommended Reading:

• 2023 Full Year Audited Returns
• 2022 Full Year Audited Returns
• 2021 Full Year Audited Returns
• 1-Year and YTD Audited Returns for 2021

We issued a press release yesterday in Business Wire with our full audited returns entitled “I/O Fund Catapults to 131% Cumulative Returns Due to Leading AI Allocation,” which you can find here.

The I/O Fund portfolio posted returns of 56.9% in 2023. If we were a hedge fund, our ranking would be #4 in the Wall Street’s Journal Winners’ Circle ranking of 1,191 funds. For those who don’t have access to the article since it’s behind a paywall, the average fund returned 19.7% in 2023 and the top three funds returned 65.2%, 59.1%, 57.2%, with the fourth returning 55.6%.

Source: Wall Street Journal

Our cumulative returns of 131% also exceeds other tech peers. When compared to the most popular tech ETF on the market, we are ahead by as much as 157%.

If you had invested $10,000 with the I/O Fund’s picks versus other all-tech portfolio at inception, the difference would be a portfolio value of $23,052 with IOF versus $8,982 with popular tech ETFs. The difference in value is 157%.

Our high allocation to AI of 45% in 2023 was timely as it allowed us to beat Wall Street to the explosive trend of AI. Nvidia was a strong call by our firm and was our largest position at the time of its knockout report. Most importantly, our track record places us as a front runner within this trend, and we are confident we will find additional winners. We exited the year with an AI allocation of 52%.

A Few Important Stats About our Performance:

• The I/O Fund’s cumulative returns of 131% outperformed the Nasdaq-100 by 49%
• The I/O Fund cumulative returns of 131% outperformed the S&P 500 by 68%.
• The I/O Fund’s cumulative returns since inception of 131% compared to popular tech ETFs at (-10%) with a relative outperformance of 141% in less than four years.
• Since inception, the I/O Fund has a lead over institutional technology portfolios by as much as 157%.
• Our 2023 returns of 56.9% would rank us as the #4 performing hedge fund in the United States, according to the Wall Street Journal.
• We had seven positions beat the Nasdaq-100. These positions were Nvidia +237%, Bitcoin +158%, Chainlink +168%, AMD +123%, Ethereum +92%, CrowdStrike 58%, and Microsoft 54.6%.
• In 2021-2022, we issued 9 buy alerts under $200 for Nvidia with the lowest at $108.51 on October 13, 2022 for gains of up to 775% in eighteen months.
• During the same time period, we issued 11 buy alerts on AMD under $110.

2023 Winning Positions Overview

Nvidia:

On average, a 15% allocation, which was our top position for most of 2022 and 2023. The returns for 2023 were 237% for 2023.

Bitcoin:

Once we confirmed a new uptrend in Bitcoin, we began to accumulate heavily throughout 2023. It is now one of our top 3 positions, and returned 158% in 2023.

Chainlink:

Chainlink has been a staple in our portfolio. It once held a 7% allocation in late 2020, and we reduced it to 2% in 2021. Now that we have a new confirmed bull cycle, we have been accumulating this alt coin in 2023. It returned 168% in 2023.

AMD:

AMD has been a top 3 position for most of 2022 – 2023. We heavily accumulated throughout most of 2023. The position was up 123% in 2023.

Ethereum:

Ethereum was up 92% in 2023 and has been a solid holding for us in 2024, so far.

CrowdStrike:

We began accumulating CrowdStrike in the $160 range. It returned 58% in 2023. We have since been taking significant gains in the $280 – $320 range, and it still remains a 6% position.

Microsoft:

Microsoft was up 54.6% in 2023. We began taking gains in 2023 and have continued into 2024. We plan to begin accumulate when the valuations become more favorable.

Performance Review:

Below is the engagement letter from the firm that reviews and verifies our performance. Our terms and conditions with the accounting firm state that this engagement letter is to only be shared with paying customers. For that reason, our performance letter resides behind our paywall. 

With that said, any paying customer can access the engagement letter which is posted on io-fund.com for this purpose. The I/O Fund owns the performance review and we do not authorize our customers or any person on our site to share a confidential engagement letter or performance review outside of our paywall. As the owner of the report, we will at times market our performance number outside of the paywall. The terms and conditions can be found here.

The I/O Fund Mission:

The I/O Fund began as an experiment to see if a team of retail investors can beat Wall Street. We are setting out to answer the million-dollar or billion-dollar question, which is how to safely participate in tech while limiting the downside. We do not believe this question has been truly answered. Hedge fund managers often pick one tech stock or a few tech stocks and place them alongside a diversified portfolio as a means of limiting the downside. However, tech is the world’s most valuable industry – no other industry offers you the opportunity for life-changing gains repeatedly, year after year. Therefore, diversifying away from tech certainly helps protect the downside but it greatly limits the upside, as well.

That leads to our mission, which is to offer an all-tech portfolio that participates in the upside yet aims to limit the downside. That’s how we hope to set our portfolio apart. Our comparison chart proves we are off to a great start in answering this problem.

When it comes to research sites, our edge is the accountability and transparency we offer. By tracking every trade in real-time, we are forced daily into instant accountability on every action we take. What results is rapid self-improvement, similar to athletes who track every mile they run, or every swing of the bat. By measuring every single daily action, our accountability has shot through the roof as has our drive to improve. 

Real-time trade alerts and an audited performance are extremely uncomfortable when you’re not performing well. However, it was this very thing that forced us to become better over the past four years. We made the case in our free newsletter that this is partly why retail performs so poorly. There are simply too few resources available that mirror what real money managers do. Transparency is integral to outperformance; money managers have to answer to their daily actions and this forces them to become better.

With that said, most professional money managers resemble what Knox does on the I/O Fund site, which is actively managing positions, with lots of activity, pivots and course corrections. This is the reality even if Retail is sold on the utopian idea that you can buy one stock and hold into eternity. In some cases, this is the correct thing to do, but it’s rare.

Risk Management:

What’s important to remember when viewing our returns is that Ark had strong returns in 2023, primarily due to Coinbase’s phenomenal performance of 400%+ which was their top position — yet our returns on a cumulative basis are 157% higher than Ark’s because of our emphasis on risk management. Retail investors are often hyper focused on the upside, which is a grave mistake because losses are geometric in nature. For example, if you are down 50%, you must go up 100% to break even. If you are down 80%, you have to go up 400% to breakeven. The impact is visible when you view our cumulative returns compared to others who had steeper losses in 2022. What separates smart money from retail is an emphasis on limiting the downside. 

Conclusion:

The I/O Fund's mission since inception is to help retail investors beat Wall Street in the competitive and complex tech sector. Our experiment in providing institutional-level research and tools to retail investors has been successful since we first launched in 2019. This includes having a cloud-focused portfolio in 2020, beating our other all-tech portfolios in the tough years of 2021 and 2022, and pivoting to a high AI allocation well ahead of 2023, which helped us triple our performance on a cumulative basis.

In the arena of investing, 2023 was a strong win for us. We easily rank in the top 90th percentile according to publicly available information on the annual returns and our cumulative returns. What I hope our members see when they review our performance is a team that has strived to deliver quality and value. The only way to truly beat Wall Street is by remaining humble while working hard at producing original analysis. The value of original analysis cannot be underestimated when working in an environment where ideas are recycled, an investment edge becomes quickly eroded, and competition is high. What we intend to deliver is the opposite, which is original and actionable analysis that helps our members get ahead of Wall Street.

We want to thank you for your business and your vote of confidence in our abilities. We love our jobs, and we are honored to tackle 2024 with you.