Einstein Portfolio Update: 14 July 2026

What to do with a poor performing portfolio?  Advice to the owner of the Einstein is to continue to add money to the portfolio and work toward keeping the various asset class close to target.  Instead of concentrating on the Internal Rate of Return, focus on the Jensen Alpha and Information Ratio.

Einstein Security Holdings

The asset allocation model is set up to resist a market draw-down.  It is anyone’s guess as to when this is likely to happen.

Most of the asset classes are currently out of balance.  With the market this high I am not inclined to rush into full compliance.  Rather a slow approach is the one I will take in hopes of picking up shares at lower prices.

I did hear a bit if interesting news and it goes as follows.  Quantum computing will likely make the current data centers obsolete and we know how much money is currently being poured into mega data centers.  Earnings do not match the investment in these centers and if they turn into bone yards in four or five years the market is in for a shock.

Einstein Rebalancing Recommendations

As with several other portfolio I am concentrating on bringing ETFs out of balance back into balance.  But using a slow process. If cash is available, in August I will try to see all ETFs within 4.5% of target.  It may be as long as a year before the portfolio is in balance.

Einstein Performance Data

Since 12/31/2021 the Einstein has lagged all benchmark by a wide margin.  When the IRR is this far behind the AOR benchmark I look to the Risk Ratios for more information as to which direction portfolio is moving.

Einstein Risk Ratios

The Jensen Alpha varied little over the past year.  The same is true for the Information Ratio, although in this case the percentage drop is much greater.  The Sortino Ratio continues in the positive range so that is some good news for this disappointing portfolio.

The hope is that the new asset allocation model will stabilize the performance of the Einstein.