Einstein Portfolio Update: 23 September 2025

Hood Ornament

Einstein is the portfolio up for review this morning and it is undergoing extensive asset allocation adjustments.  The performance of this portfolio is not up to “snuff” as the owner needed cash for tuition.  Rebuilding Einstein is now underway so I expect fresh dollars to be added nearly every month.  It is much easier to accomplish rebalancing when new money is consistently added.

Einstein Asset Allocation Lineup

Below is the current asset allocation plan for the Einstein.  In the second screenshot I’ll explain how I am rebuilding the portfolio when cash becomes available.  When the third quarter ends the Einstein will have a little cash to aid in the rebuilding process.

Once all asset classes are close to target the plan is to not sell, but always add shares to those asset classes most below target.  If the asset classes indicating a Buy are up to target I will next move to asset classes most below target regardless what the recommendation – even if the Kipling says to Sell.  I want the ITA portfolio to be as tax efficient as possible in 2026.

Einstein Rebalancing Recommendations

The Kipling spreadsheet is used as a guide to determine which ETF or asset classes to populate.  Four asset classes are recommended for purchase and they are:  Small-Cap Equities (VB), Developed International Equities (VEA), Emerging Markets (VWO), and High Dividend Yields (VYM).

Take VEA as an example.  This morning the recommendation was to add 125 shares as the Einstein did not hold any shares of VEA.

• I set a limit order very close to the current price to purchase 25 shares.  That order was struck while I was writing this blog.
• A second limit order at 3% below the current price is in place.
• A third limit order at 5% below the current price is in place.

Similar laddered orders are in place for VB and VWO.  The order for VYM was struck while the blog was under construction.

Over the course of the next six months there is a high probability all these limit orders will be activated based on normal annualized volatility.

Einstein Performance Data

As mentioned above, the Einstein portfolio has been a poor performer since 12/31/2021.  Now that it looks like future withdrawals are over so excuses are history.  Now we need to watch the Jensen Alpha and Information Ratios to observe the performance direction.

Einstein Risk Ratios

There is slight improvement in the Jensen Performance Index (Alpha) since August.  There has been little change over the entire year.  The Information Ratio tells us the portfolio is loosing a little ground to the AOR benchmark.  This decline needs to reverse over the next year.

Comments and Questions are always welcome.  Place them in the space provided below.