Next to the youngest of the ITA portfolios is the Franklin, launched at the end of November of 2020. This launch date is the reason the performance data uses 11/30/2020 as the starting date. Only the Copernicus, launched this past January is younger. As one of the Dual Momentum™ portfolios participating in a look-back experiment, the Franklin is also one of the poorest performers tracked here at ITA. Luck-or-review-day was not kind to the Franklin during the bull market of 2021 so it is still playing catch-up.
Franklin Dual Momentum Recommendation
The look-back combination for the Franklin is close to the Kipling default settings. I did strip 10% of volatility and shifted that 10% to the 100-trading days look-back. Check the green arrow. This move still keeps the Franklin as the short look-back combination whereas both the McClintock and Pauling use longer look-back combinations. The Pauling comes up for review later this week.
Based on mid-morning data, the recommendation for the Franklin is to continue to hold 100% of the portfolio in TIPs (SCHP). This morning I placed a limit order to add another 5 shares of SCHP to the Franklin.
Franklin Performance Data
The Internal Rate of Return for the Franklin is still in the red (-2.9%) while the AOR benchmark is generating a Time-Weighted Return of 5.6%. The Franklin is one of the few, if the only portfolio not beating the AOR benchmark. Lifetime members have access to the performance performing blog entries.
Franklin Risk Ratio
The one positive note for the Franklin shows up in the slope (0.25) of the Jensen Performance Index. Two goals I have for the Franklin are: 1) Move the IRR needle into positive territory and 2) Continue to see improvement in the slope of the Jensen ratio.
- Tomorrow the Einstein is up for review, followed by the Pauling update on Friday.
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