Key Points
- My net investable assets increased to $530,141.
- The IRR for trailing 12 months (TTM) increased to 9.56%.
- I made large profits from trading crude oil futures.
- My asset allocation is heavily concentrated in DLI Fund.
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 |
| LendingClub | $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 $80,141 more than forecast. The primary source of the asset growth came from short-term trading. 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 | IRR (TTM) | IRR (TOT) |
|---|---|---|---|
| LendingClub | 26.75% | 8.37% | 8.74% |
| Direct Lending Income Fund | 73.25% | 10.75% | |
| Total | 100% | 9.56% | 9.64% |
I have been gradually shifting my asset allocation from LendingClub to DLI Fund as my net annualized returns continue to decline. I significantly overestimated the performance potential of the consumer credit asset class. The gap between actual and expected returns exceeds 5 percentage points. After nearly two years of investing with LendingClub, I concluded that it represents a high-risk, low-return, high-maintenance, and highly tax-inefficient investment vehicle. While the stock market offers excellent long-term wealth-building potential, I prefer not to endure its daily volatility. DLI Fund’s investment performance is notably more stable and predictable. I prioritize investments that allow me to set it and forget it while maintaining peace of mind.
