Greece: New among old
After the market opened this morning I proceeded to reallocate and/or rebalance the Carson, Bohr, and now the Franklin portfolios. Not all limit orders were struck, but all three portfolios are set to finish out 2023 without too much further trading. Follow along as I review the Franklin, one of the newer Sector BPI portfolios.
Franklin Investment Quiver and Holdings
Below is the current investment quiver and holdings for the Franklin. Examine the eleven sector ETFs or those with the gray background. In the third column from the left you see the percentage each oversold ETF is to hold in the portfolio. Over in the far right-hand column you observe the actual percentage. For example, Materials (VAW) is to hold 9.1% while the actual holding is 9.5%. I frequently purchase sufficient shares to go above the recommended percentage so long as cash is available.
Industrial (VIS), another oversold sector, is to hold 8%, but currently holds 2.4% as it is not fully populated. In the second screenshot you will see that VIS is waiting for another five (5) shares to hit its limit order price.
Franklin Manual Risk Adjustment
With exception of VIS all assets are set up to operate until one or more of the sectors hits the overbought zone. Each of the sectors holds at least one share. I did this so the Portfolio Report will show how well the portfolio performs from November 1, 2023 going forward when all asset hold at least a single share.
Franklin Performance Data
Over the past 22 months the Franklin managed to edge out the SPY benchmark. The margin is thin, yet it is no mean feat to outperform the S&P 500. Note that the delta is much larger for the other potential five benchmarks. Thus far the Sector BPI investing model appears to be working for the Franklin portfolio.
Franklin Risk Ratios
Most, but not all, risk measurements are higher than they were a year ago. Keep in mind that we are currently in about as deep a bear market as we’ve been in for some time. Now that all sectors are full populated, with exception of VIS, very little trading is likely to occur in the Franklin over the next few months.
Examining the negative Jensen values late last year, the slope of the Jensen should stay positive over the next few months.
Franklin Portfolio Report
I now have sufficient data for the Franklin to produce a Performance Report. What the following table shows is based on Buy-Hold-Sell decisions over the past 22 months for the 14 securities currently held in the Franklin, the portfolio outperformed the S&P 500 by nearly seven (7) percentage points. Keep in mind that the Franklin held other securities during this period. The purpose of this table is to show how well this Sector BPI Plus portfolio performed based on the current 14 held securities.
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Buying Guidelines For BPI Model Portfolios: 9 December 2022
Tweaking Sector BPI Plus Model: 20 May 2023
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