Carson Portfolio Review: 13 March 2023

Girders

With five of eleven sectors in the over-sold zone, the Carson needs special attention.  This also applies to the Franklin, Millikan, and Gauss portfolios.  I’ll be working to rebalance each this week.

Carson Sector Investment Quiver

We begin the week with the following holdings in the Carson.  In order to bring VDE, VFH, VGT, VAW, and VPU up to the recommended percentages, shown in the third column from the left, I will need to sell shares of SCHP and ESGV.  VPU currently holds 14.6% so that is sufficiently close to 15% that no more purchases are necessary.

Keep in mind the Strategic number of shares is calculated by taking 0.70 x annualized volatility.  I adjust the coefficient so the maximum percentage in the most volatile sector ETF does not exceed 25%.  Energy (VDE) is at that limit right now.

Carson BPI Sector Adjustments

I use the following worksheet from the Kipling spreadsheet as guidance as to how many shares need to be purchased for the sector ETFs.

Check out the fifth column from the right for this information.  The percentages I am trying to hit are listed in the third column from the right.

Carson Performance Data

Last week the equities market dipped to where the Carson moved back into negative territory when measured over the past 14.5 months.  On a positive note, the Internal Rate of Return (IRR) is higher than any of the potential or possible benchmarks.  As long-time readers know, I am using the AOA ETF as the benchmark for the ITA portfolios.  It would make sense to use SPY for the Sector BPI portfolios and I may switch to that benchmark in the future.

Carson Risk Ratios

Interest rates dipped on short-term treasuries and that helped to lift the Sortino Ratio.  The Jensen Alpha gained since February although the Information Ratio declined.  This last ratio (Information) provides clarity as to how well the portfolio is performing with respect to the benchmark.

Carson Portfolio: Creating A New Investing Model

Buying Guidelines For BPI Model Portfolios: 9 December 2022