A Note to Our Readers: The post below was originally written as personal monthly letters to our Charter Asset Management clients from our CEO, Jesse Anderson. We have modified them slightly to share important insights with the entire Snider Advisors community.
A Milestone Third Quarter for the Snider Investment Method
The third quarter of 2026 delivered strong results for the Snider Investment Method, highlighted by exceptional income generation in August and resilient portfolio performance amid shifting market conditions.
July: Income During Headwinds
July marked another strong month, with annualized net current yield once again exceeding 10% (after management fees). Six of the first seven months of 2026 had reached that milestone. What made July’s results particularly encouraging was the market environment: during our reporting period of June 22 through July 17, the S&P 500 and Russell 2000 each declined approximately 0.5%, while the NASDAQ fell more than 6%. Despite these headwinds, our managed Snider Method portfolios finished higher on average, as income generation more than offset the market’s price declines.
August: A Milestone for Portfolio Income
August delivered one of the year’s most impressive results. For the first time since 2021, average net current yield across our managed portfolios exceeded 15% annualized (after management fees). To find yields at this level before 2021, we have to look back to the early years of the Snider Method, 2004-2006. It was a remarkable milestone, supported by strong performance across several income sources.
Option premiums surpassed $1 million, capital gains reached their highest level of the year, and more than 25% of open positions closed profitably at August expiration. Interest and dividend income also remained strong and consistent. Together, these contributors demonstrated how the Snider Method combines multiple income sources to support portfolio results. After closing approximately one-quarter of our holdings, we also had substantial cash available to invest in new income-generating positions.
September: A Steady Approach in Changing Markets
September was quieter by comparison, with annualized net current yield finishing at 9.9% (after management fees). While that was below the exceptional levels achieved during the summer, a yield approaching 10% remains a solid result.
The broader market was relatively flat, but the Russell 2000 declined approximately 5%. Because our portfolios often have greater exposure to smaller companies, we felt some of that pullback. Why did smaller companies pull back? It mostly comes down to interest rates.
For the first time since July 2023, the Federal Reserve raised interest rates in September. Smaller companies often rely on borrowing money to grow their businesses, so when interest rates go up, borrowing becomes more expensive, and their stock prices naturally react.
However, higher rates can also benefit our portfolios by increasing interest earned on strategic cash reserves. This illustrates how multiple income sources help the Snider Method adapt to changing market conditions while maintaining disciplined portfolio management.
Looking Ahead
As we enter the final quarter of 2026, these results offer plenty of reasons for confidence. They also reinforce the importance of staying focused on a consistent process rather than short-term market movements.
We will continue to focus on company quality, thoughtful position management, and prudent cash reserves rather than reacting to short-term headlines. Thank you for your continued trust and partnership. If you have questions about your account or changes in your personal financial situation, we are always here to help. It is a genuine privilege to serve you.