Key Points

  • My net investable assets increased to $530,141.
  • The IRR for the trailing 12 months (TTM) increased to 9.56%.
  • I have been gradually shifting my asset allocation from Lending Club to DLI Fund as the return of unsecured consumer credit is diminishing.

Asset Allocation

Net Investable Assets: $530,141

Account 2014Q4 2015Q4 Change
Cash $52,197 $10,081 $42,116
Brokerage $2,814 $29,921 $27,107
Lending Club $258,266 $177,860 $80,406
Direct Lending Income Fund $0 $487,118 $487,118
Debt $0 ($174,840) $174,840
Total $313,277 $530,141 $216,864

My NIA increased by $216,864 which was $65,570 more than forecast. The primary source of the asset growth came from short-term trading profits. The volatility in crude oil prices was an excellent opportunity to make a profit. I made massive gains by taking up a short position in the crude oil futures market.

Internal Rate of Return (IRR): 9.56%

Account Allocation XIRR (TTM) XIRR (TOT)
Lending Club 26.75% 8.37% 8.74%
Direct Lending Income Fund 73.25% 10.75%
Total 100% 9.56% 9.64%

I moved a large sum of my investment money into DLI Fund this year. I overestimated performance of unsecured consumer loans. The discrepancy between actual and expected return is more than 5 percent. After almost two years of investing with Lending Club, I figured that it was a low-risk, medium-return, high-maintenance, and highly-tax-inefficient. The performance of DLI Fund is much more stable and predictable. The stock market is a good way to grow wealth over the long term, but I do not want to participate in the daily gyrations of the market. I much prefer to have investments that would allow me to “set it and forget it” and sleep well at night.