Bohr Portfolio Review: 16 June 2022

Bohr is a growth-income combo portfolio that is taking a beating in today’s down market.  This is a Buy & Hold portfolio so there is no effort to provide downside protection.  Unlike the Dual Momentum™ and Relative Momentum portfolios, the Bohr will ride the waves of market storms.  When the market recovers, this style portfolio is positioned to take off.  That could be months or even a year into the future.  A young investor holding this portfolio wishes the market will dip lower so future dividends can be used to purchase more shares for each dollar invested.

Bohr Investment Quiver

The investment quiver is made up of two parts.  The growth section comes from VTI, VBIAX, VEA, and VWO.  These are the equities holdings, although there are some bonds mixed in or a portion of the VBIAX fund.

Those securities with the gray background are Closed-End-Funds (CEFs) that produce income.  Dividends from the CEFs are reinvested and in times like this we are picking up shares at lower prices.  In 15 days the second quarter dividends will arrive and I will be purchasing more CEF shares early in July.

Bohr Security Recommendations

Keep in mind this is a Buy & Hold portfolio so we are not following the sell recommendations for VBIAX, VTI, VEA, and VWO.  As for putting additional cash to work, I’ll pay attention to the Buy recommendations for KYN and MFD.  I use CEF Connect to see if these two tickers are generating yields in excess of 8.0% and if they are still priced below their Net Asset Value (NAV).  Both KYN and MFD meet the two basic requirements so I’ll place limit orders to use the available cash.

Bohr Manual Risk Adjustments

Below is the plan to work with the Bohr holdings and available cash.  I’m concentrating on picking up more shares of KYN as it is priced well below its NAV and it is throwing off an excellent return.

Bohr Performance Data

For the first time in many month the Bohr is under water with a slightly negative return since 11/30/2020.  The great returns from 2021 were obliterated in the last six months.  However, the AOR benchmark is even a worse performer.

Bohr Risk Ratios

Portfolios are bucking higher interest rates, war, inflation, and possibly some price gouging.  The Bohr continues to show a positive Jensen Alpha and the slope is still positive (0.55).  The positive slope will likely change if one looks back to the high values for Jensen during last September, October, and November.  The investor taking the long view needs to look out into late 2023 when the FEDs hope to have inflation back to 2.0%.  That might be wishful thinking at this point.

I continue to take available cash and set staggered purchase orders well below the current price of securities.  Some orders are set as low as 30% below the current price, although I never expect these orders to occur.  TDAmeritrade holds limit orders for six months while Schwab only holds them for two months.  Therefore the Schwab orders need to be reset frequently.

The Bohr will be updated in early July after the second quarter dividends are recorded.