Bohr Sector BPI Portfolio Review: 13 October 2023

Early snow on the Three Sisters. View when traveling between Bend and Sisters.

Bohr is currently classified as a Sector BPI Plus portfolio, but it is still in transition from a Growth and Income portfolio.  This portfolio continues to hold a number of Closed-End-Funds (CEFs).  Now that the third quarter dividends are in I’ll be selling them and reinvesting in the oversold sectors.

Bohr Investment Quiver and Holdings

Below is the investment quiver and current holding for the Bohr.  ETFs with the dark green background will gradually be sold out of the portfolio and the cash will be reinvesting in the oversold sectors.

Bohr Security Recommendations

Based on the Buy-Hold-Sell (BHS) model and the one-year look-back period, no securities are recommended for purchase.  However, the Sector BPI model recommends purchasing these sectors.  They are:  Discretionary, Staples, Health, Utilities, and Real Estate.  Materials is so close to the oversold zone that I plan to add shares of VAW after the market opens tomorrow morning.

Bohr Manual Risk Adjustments

There are no plans to add any more U.S. Equities other than the Sector BPI recommendations.  In other words, no changes are planned for VTI, SPY, ESGV, VOO, etc.

Bohr Performance Data

The primary reason for moving the Bohr from a Growth and Income portfolio over to the Sector BPI model is the large difference between the Internal Rate of Return (IRR) of the portfolio and its SPY benchmark.  The goal over the next year is to close this gap.

There is no sugar coating this portfolio’s poor performance.  Change is necessary.  Now we need to see if the Sector BPI “magic” will work for this portfolio.

Bohr Risk Ratios

The continued poor performance is reflected in the decline of the Jensen Alpha.  The single glimmer of hope is that the negative slope of the Jensen is not as great as it was back in September when the Bohr was last reviewed.

This week the portfolios up for review are:  Carson, Copernicus, and Franklin.