Tarps Off! – Sailboats being prepared for launch for the 2022 season.
My apologies for being a little slow with this month’s review of the Darwin Portfolio – I have been a little busy trying to get ready for the spinoff Options group. However, it isn’t too critical since I don’t intend to make any adjustments this month.
The Darwin Portfolio is a small fully-invested portfolio that uses risk parity to determine allocations. Since it is a small portfolio I will probably only make adjustments quarterly unless allocations move significantly out of balance (> 20+% differences).
The above screenshot shows current recommended allocations for the 5 Core holdings. In addition, $10k is allocated to SVXY, the inverse volatility ETF. The portfolio is also slightly leveraged at ~35%.
Performance to date looks like this:
with a negative 7.5% Internal Rate of Return (IRR) since inception.
In stacked area format the performance looks like this:
Although the recommendations vary slightly from current holdings, I shall not be making any adjustments at this time and will continue to hold the positions recommended in last month’s review https://itawealth.com/darwin-portfolio-review-18-march-2022/
David
David,
It strikes me as odd to see all but VIX performing above the portfolio sum, yet the portfolio is performing below its individual parts.
Lowell
Lowell,
The scales are different – Value of individual assets uses scale on left vertical axis – Total Portfolio uses scale on right vertical axis.(Top Chart). The jumps in individual asset values reflects the impact of adjustments.
Stacked chart shows values stacked – left vertical axis (Bottom chart) – Portfolio is leveraged so sum of stacked values is higher than portfolio value since money is borrowed.
David