Bike Mentor
Franklin (named for Rosalind – British chemist) is a small Sector BPI portfolio or one of eleven ITA portfolio using this particular investing model. Not all eleven are reported on this blog as some owners prefer the data not be public.
Several of the screenshots come out of the Kipling spreadsheet. The first, second, and third screenshots below are from the Kipling.
No sectors are currently in the oversold zone as Telecommunications bounced back at the end of the week and is no longer in the oversold zone. A purchase of VGT took place last week when Telecomm was still in the oversold zone.
Franklin Security Holdings
Below is the investment quiver and current holdings for the Franklin. VPU and VGT are the most recent recommendations and both overshot the recommended percentage. That is not a problem as there is still excess cash available should another sector drop into the oversold zone.
Franklin Manual Risk Adjustments
Based on the Position column no ETFs are recommended for purchase. The lone Buy recommendation is VPU where 14 shares is the recommended number and we already hold 20 shares. Therefore, no ETFs are recommended for purchase.
To protect capital I have Trailing Stop Loss Orders (TSLOs) of 7% for VTI and 8% for VOO in place. Should we experience such a drop there is a high probability one or more sectors will dip into the oversold zone. At that point cash will be available to purchase sector ETFs.
Franklin Performance Data
Since 12/31/2021 the Franklin edged out the SPY benchmark by a tad over one percentage point. The advantage is much greater over benchmarks such as AOA and AOR. This data comes from the commercial software, Investment Account Manager.
Franklin Risk Ratios
Once we clear April data the slope (-0.05) of the Jensen Alpha should flip to positive. We see improvement in the Jensen for most of this year, a positive signal the Sector BPI model is working as anticipated.
The Information Ratio is the highest since last December, another positive indicator.
Franklin Sector Portfolio Report
The following table shows IRR calculations since November of 2022 or when I began using the Sector BPI model with the Franklin. The IRR for this period is 51.1% for the Franklin vs. 32.7% for the SPY benchmark. The Franklin bested every one of the potential benchmarks.
For investors interested in the Sector BPI model, this data is very encouraging.
Is this outstanding data due to a particular starting point? To answer this question I plan to produce six-month rolling performance data for all eleven Sector BPI portfolios. Look for this blog post later today.
Here are links to other portfolios using the Sector BPI investing model.
Pauling II Update: 1 April 2024
Gauss Sector BPI Portfolio Update: 3 January 2024
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