Bethe Portfolio Update: 30 July 2025

Flower Garden

Bethe is one of the “mini” asset allocation portfolios and one that needed rebalancing.  This morning I sold a significant number of SHV shares making rebalancing possible.  SCHD was most out of balance and I will explain below how I went about setting limit orders.

Bethe Asset Allocation

Below is the current asset allocation and shares held in the Bethe.  Assume it will take several months to bring the portfolio into balance as I continue to “play” a safe or conservative game amidst the chaotic political environment.

Nothing has changed significantly in the Schiller and Buffet indicators.  Both show the U.S. Equities market to be overbought or over-priced.  Two more reasons to be cautious.

Bethe Rebalancing Recommendations

As mentioned above, the Bethe is in need of rebalancing.  I will use SCHD as the rebalancing example as it is most out of balance when checking on the four equity Exchange Traded Funds (ETFs).

Rebalancing Moves for SCHD

1. Purchase 79 shares at market.
2. Look up the annualized volatility for SCHD.  It is currently 16.4%.
3. 300 more shares are needed to bring SCHD into balance so set a limit order for 100 shares at 5% below the current price of $27.00.
4. Set a second limit order for another 100 shares at 10% below current price.
5. Set a third limit order for the last 100 shares at 15% below current price.

The limit orders are good for six months.  Since the 16.4% is annualized one could cut this in half since the limit orders are only good for the next six months.  Another limit order sequence might be to set three limit orders around 2.5%, 5.0%, and 8% below the current price.  Those are rough estimates.  If the annualized volatility is plus or minus 16% then it seems reasonable to think we will see plus or minus 8% swings over the next six months.

Bethe Performance Data

Since 12/31/2021 the Bethe is slightly behind the AOR benchmark, but quite far off the SPY mark.

Bethe Risk Ratios

Over the last few months the Bethe showed improvement in the Sortino, Jensen, and Treynor ratios, but registered the worst Information Ratio reading.  Any equity pull-back will definitely benefit the Bethe portfolio as we should begin to pick off limit orders.

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