Ship Decay
Bohr is another asset allocation portfolio under construction or in the process of rebuilding. In operation for nearly seven months and carrying quite a bit of cash it will require some patience before all asset classes are in balance. With a value in excess of $100,000 the goal is to bring each asset class within plus or minus 0.5% of the target percentage.
Bohr Asset Allocation Portfolio
Below are the current holdings for the Bohr portfolio. The far right-hand column shows which asset classes are out of balance and by what percentage.
Bohr Rebalancing Recommendations
Once more, the rebalancing recommendation is to limit selling shares to rebalance as that creates a potential tax event. Rather, the rebalancing process is to use dividends and the possible infusion of new cash to bring those asset classes most below target up to the recommended target percentage.
Bohr Performance Data
Since 12/31/2021 the Bohr has lagged the AOR benchmark. To gauge what direction the portfolio is moving we rely on the Risk Ratio data.
Bohr Risk Ratios
The Sortino Ratio indicates the portfolio is gaining in overall value. The Jensen Alpha shows progress when risk is part of the equation. The positive slope of the Jensen is most important.
I don’t pay too much attention to the Treynor as it is heavily weighted or influenced by the portfolio beta. The Information Ratio is back to the September value indicating the portfolio lost ground to the AOR benchmark since October.
Comments are always welcome.
Returning To Investing Roots: 5 August 2024
The Argument for Self-Management
Discover more from ITA Wealth Management
Subscribe to get the latest posts sent to your email.
You must be logged in to post a comment.