Bethe Portfolio Review: 4 August 2023

Image of Macaw made in the jungle of Peru

Bethe is the portfolio scheduled for review this 4th day of August.  Over the next few weeks or perhaps months readers will see this portfolio transition from a growth-income portfolio to another Sector BPI Plus investment model.  The primary reason for the change is that the Sortino continues in negative territory indicating the account is not increasing in value as it should.  The Jensen Alpha is also negative despite the Bethe IRR outperforming the IRR of SPY.

Bethe Investment Quiver and Holdings

Below is the current investment quiver and holdings for the Bethe.  A significant percentage of the portfolio is still devoted to Closed-End-Funds and those have not been keeping up with the growth of the U.S. stock market.

When the Bethe is next reviewed or updated, look for a reduced or more concentrated investment quiver.

Bethe Security Recommendations

None of the sectors are recommended for purchase so we focus on ETFs such as VTI, SPY, ESGV, VOO, VEA, and VWO.  From this group, only VTI is recommended for purchase.

Bethe Manual Risk Adjustments

Early this morning I placed two limit orders to add 30 shares of VTI to the Bethe.

Bethe Portfolio Performance

The good news is that the Bethe is outperforming the SPY benchmark by nearly one percentage point.  The next goal is to reduce portfolio risk so as to improve the Return/Risk ratio.

Bethe Risk Ratios

Five months of negative Sortino is a drought in this market.  Hence the change in the investing model.  The Sector BPI Plus model is proving to be worth the effort so I am migrating the Bethe over to the sector model.

Once we clear the month of February, and the Sector BPI model continues to hold up, we should see the slope of the Jensen flip from negative to positive.