Einstein Sector BPI Portfolio Review: 9 April 2024

Presbyterian Church

Einstein is the Sector BPI portfolio up for review this morning.  When updating a portfolio I check on the earnings for SHV as that value or percentage impacts the Jensen Performance Index.  The yield is up from 4.81% to 4.95% which places downward pressure on the Jensen.

The owner of the Einstein will need to withdraw cash this year and that is the primary reason for carrying such a high percentage of the total portfolio.  Cash lowers the portfolio beta, yet is a drag in an upward market.  Depending on the market direction cash is a plus or minus.  Since we are moving toward summer, not an especially ideal time for equities, I placed Trailing Stop Loss Orders under ESGV, VTI, and VOO.  When using TSLOs I generally use an 8% setting.

Einstein Security Holdings

Below is the current holdings for the Einstein portfolio.  No sectors are oversold so no buying opportunities are recommended for the eleven sector ETFs.

Einstein Manual Risk Adjustments

Since cash withdrawals will occur later this summer and in early fall, I don’t have any limit orders set to pick up more shares of either VTI or VOO.  Since the three U.S. Equity ETFs are all showing a Hold recommendation I would not be adding shares to the Einstein even if cash withdrawals were not in the offing.

Einstein Performance Data

Since 12/31/2021 the Einstein is lagging the SPY benchmark be a wide margin.  This delta is the primary reason why I moved the Einstein over to the Sector BPI investing model.

Einstein Risk Ratios

The Einstein was moved to the Sector BPI model in October of 2023.  Based on the Jensen values the portfolio has yet to gain its footing with this new investing approach.  The Jensen is making slight gains since February despite the rise in SHV (short-term interest rates).  The Treynor Ratio is also improving over the last few months.

I need to see a few buy/sell cycles before I’ll have a good idea as to how the Sector BPI model is working for the Einstein where cash is withdrawn from time to time.

Tweaking Sector BPI Plus Model: 20 May 2023

Tweaking Sector BPI Plus Investing Model: Part II

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