Gauss Portfolio Review: 2 December 2025

Bodie Mining Offices

December begins with a review of the Gauss portfolio.  As the U.S. Equities market moves higher the probability of a reversion to the mean increases.  For that reason readers will see a number of ITA portfolio holding bonds and treasuries, although there is likely no place to hide other than to short the market.

Gauss Security Holdings

Below are the current Gauss holdings.  The three sectors, Staples, Health, and Utilities, are sections of the market most resistant to a major draw-down as these are goods and services required for daily living.

Dividends and new cash should be sufficient to keep the various asset classes in balance.

Gauss Rebalancing Recommendations

Limit orders are in place to purchase shares of those Exchange Traded Funds (ETFs) that show up as a Buy.  Before the new year the goal is to have those seven ETFs close to the recommended target percentage.  Asset classes with a Hold or Sell will not be fully populated.  We are counting on this Risk Adjustment worksheet from the Kipling Spreadsheet to provide management guidance.

Gauss Performance Data

Since 12/31/2021 the Gauss has outperformed the AOR benchmark by a wide margin, but lags broad based ETFs with considerable exposure to mega-cap stocks such as NVIDIA.

Gauss Risk Ratios

Over the past year the Gauss increased in value and has outperformed the benchmark each month.  Anytime the Information Ratio is positive we know the portfolio bested the benchmark.  Since last April the portfolio has done quite well based on the Jensen Alpha Ratio.

Once we clear December of 2024 the slope of the Jensen may turn positive.  We anticipate 2026 will be a challenging year for investing so stay tuned.

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