Gauss Portfolio Review: 28 February 2023

Colorful array of spirits.

Gauss needs a little work this morning as the Utilities sector is not fully populated.  Energy (VPU) is within a whisker of being over-sold so I have limit orders in place to pick up more shares of this sector.  Nothing else has changed within the Bullish Percent Indicator world.

Gauss Investment Quiver

Below is the current Gauss portfolio holdings.  If you move to the far right column you will see the two Sell areas are Energy and Utilities.  The Sector BPI model is a contrary approach.

Checking the percentages I see where I need to add 6% to Utilities to bring it up to the 15% level.

Gauss Manual Risk Adjustments

This risk adjustment worksheet is included so readers can see where I receive guidance as to how many shares to add to Utilities and Energy.  50 more shares of VPU will be added after the market opens.  I also need 215 more shares of VDE to bring it up to the 25% level.  I have sufficient cash available so I will not need to sell any shares to make these purchases.

If I don’t want money lying around in cash I can purchase 210 shares of SHV to earn a tad more interest.

Gauss Performance Data

Over the past 14 months the Gauss is edging out the AOA benchmark as well as the S&P 500.  Since the percentages are so close, this is a good portfolio to watch from month to month to see if the Sector BPI model can maintain this slight edge or even widen the margin.

Gauss Risk Ratios

The 0.03 for the Information Ratio shows the slight margin the portfolio has over the AOA benchmark.  Based on the risk involved, the Gauss is not doing all that well as indicated by the Jensen Alpha.  Note the February decline since January.  The Sector BPI model will certainly be tested as we keep an eye on the slope of the Jensen.

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