Bethe Portfolio Review: 28 March 2023

Morning light on Helleborus flowers.  Planted in memory of Kipling.

Investors seeking income and growth will find Bethe and Bohr the two portfolios to follow.  This morning I will update the Bethe.  If one seeks only income, then Huygens is the portfolio of interest.

Bethe Investment Quiver

Below is the investment quiver for the Bethe portfolio.  Ticker symbols with the light background (IAF down through NCV) are the income generators.  The other ETFs provide the growth side.

Based on current price movement, no growth ETFs are recommended.  VTIP, found at the very bottom and SCHP are both inflation protection securities and both indicate a Buy.  Limit orders are in place to use up the available cash.

As currently constructed, the Bethe is primarily designed to throw off dividends.

Bethe Performance Data

Over the past 15 months, how well has the Bethe performed?  Based on the annualized Internal Rate of Return (IRR) data, the Bethe is outperforming all listed benchmarks and particularly the SPY ETF.  SPY is the investable ETF that mirrors the S&P 500.

Bethe Risk Ratios

Closed-End-Fund managers have not done well over the last six weeks and that accounts for the decline in the Jensen Alpha.  For the first time in over a year the Jensen dipped into negative territory and the slope is now negative.

From the Information Ratio we see the portfolio is still holding a slight margin over the SPY benchmark.  I don’t pay too much attention to the Treynor as it is so heavily beta dependent.

Once first quarter dividends arrive we may see a slight improvement in performance of Bethe.