Bethe Portfolio Review: 21 February 2023

Victorian House – Eureka, California

Bethe is one of two growth-income portfolios.  The other is the Bohr.  Bethe experienced a nice upward bump of over 9.0% in January, but has since fallen off slightly.  With portfolios that have any emphasis on income, we always look forward to the end of the quarter as that is when dividends are highest.  Since the last update I purchased 100 share of TDA and sold all shares of RGT as the income stream dropped below the 8.0% guidelines.

There is still plenty of cash to work with in this review due to the sale of RGT.  More as to how I plan to handle this is found below.

Bethe Investment Quiver

The current portfolio is generating nearly 8.0% in dividends.  That nearly meets the requirements of a “pure” income oriented portfolio such as the Huygens.

Bethe Manual Risk Adjustment

After the market opens this morning I plan to set limit orders for VOE, VBR, and VOT.  To beat an old drum, with the debt limit hanging over the market I’ll likely set the limit orders around 10% to 15% below current prices.  In other words, I’m not in a hurry to put the available cash back into stocks.  If you check the Annualized Volatility of ESGV in the following table you see a value of 26.0%.  With this kind of annualized volatility and the market currently fairly valued, it makes sense the we could easily see a 10% drop at some point over the next six months.

Bethe Performance Data

Since 12/31/2021 the Bethe has outperformed all six benchmarks by a sizable margin.  One cannot ask for much more than this.  Don’t be thrown off by all the red.  Compare the portfolio performance with the AOA benchmark and the differences is significant.

Bethe Risk Ratios

Over the past year the Bethe managed to eek out a positive Jensen slope (0.08).  While the Information Ratio at 0.45 is not the high point of the year, it is well above average.  This 0.45 value indicates the portfolio is performing better than the AOA benchmark.