Key Points

  • My net investable assets increased to $530,141.
  • The IRR for the trailing 12 months (TTM) increased to 9.56%.
  • I made large profits from trading crude oil futures.
  • I moved a large sum of my investment money into DLI Fund this year.

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 $216k which was $65k 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 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 have been gradually shifting my asset allocation from Lending Club to DLI Fund as my net annualized return is diminishing. I overestimated performance of the consumer credit asset class. The discrepancy between an actual return and an expected return is more than 5 percent. After almost two years of investing with Lending Club, I figured that it was a high-risk, low-return, high-maintenance, and highly-tax-inefficient investment.

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. The investment performance of DLI Fund is more stable and predictable. I prefer to have investments that would allow me to set it and forget it and sleep well at night.