The Dirac portfolio is the only portfolio reviewed on this site that is built from individual stocks, rather than from Funds of stock, and the recent high volatility and pullback in US equity prices has taken it’s toll on the portfolio as numerous Trailing Stop Loss Orders (TSLOs) were hit over the last few weeks. This leaves the portfolio with only three remaining holdings from a maximum of twenty:
Eighty-Five percent of portfolio value is available in cash for possible allocation to new stock positions. However, let’s first take a look at how the portfolio has performed to date:
where we see that year-to-date performance has not been as good as the benchmark S&P 500 Index (as represented by SPY). This is a result of using tight TSLOs in a volatile but sideways market – SPY is only slightly (~1.5%) higher on the year within a ~7% range.
Checking current rankings and recommendations (using the BHS model):
we see that current holdings remain as Holds with five new Buy recommendations. Thus although we see Buy recommendations, they only represent 25% of portfolio value. Therefore, assignment of funds to these five stocks:
leaves us with a portfolio with only ~3.5% risk (with appropriate TSLOs in place). This seems reasonable considering current price and high volatility levels – but leaves me with 60% of portfolio value in Cash.