Darwin Portfolio Review: 18 February 2022

Giant’s Causeway, Northern Ireland

The Darwin Portfolio is a “Core” Portfolio holding just 5 diversified assets and is only adjusted to maintain risk parity between the assets held.

Performance to date looks like this:

where we see that only GLD has shown strong performance over the past month. The stacked chart shows the relative allocations to the assets held:

and we see that GLD is well represented. However, the Internal Rate of Return (IRR) since inception in June 2021 is a disappointing -8.75%. Although this doesn’t sound good we have to remember that timing of the inception was not good and that we have seen a ~12% pullback from the highs in this period – so it’s not bad on a relative/comparative basis.

The portfolio is also “hedged” by a 10% holding in Volatility ETFs – currently SVXY, that is down a little recently but has generally contributed positively to portfolio performance over the past 4 months.

Current calculated allocations look like this:

and differ slightly from current holdings but are generally within the 20% difference limit that I am using to trigger adjustments – so I will not be making any adjustments this month. The portfolio will retain current allocations/holdings for another month.

David