Gauss Portfolio Review: 4 March 2025

One of many churches in Canby.

Gauss is one of several Asset Allocation (AA) portfolios.  This account differs slightly from other Asset Allocation portfolios in that it is a simplified AA version containing fewer ETFs.  The stock/bond ratio is the classic 60% stock or equities and 40% bonds.

Formerly the Gauss was using the Sector BPI investing model.  To reduce work load I moved this portfolio over to a passive approach to investing.  Once the portfolio is in balance new cash and dividends will be used to keep the various asset classes in balance.

Gauss Asset Allocation Portfolio

Below is the current makeup of the Gauss portfolio.  The portfolio will not be in balance until two sectors, Energy and Materials, are sold.

Gauss Rebalancing Recommendations

When cash is limited, as is currently the case, I favor bonds and treasuries as they throw off dividends.  Notice that VOO is the only recommended Equity for purchase.  Even though International Equities (VEU) is far below target, I will let this asset class languish until it shows up as a Buy.

Gauss Performance Data

Since 12/31/2021 the Gauss has outperformed the AOR benchmark by a wide margin.  Even more encouraging is that it has also bested the SPY benchmark.

Gauss Risk Ratios

Over this past year the Jensen Alpha for Gauss bounced all over the lot.  Once the portfolio is in balance I expect the Jensen will calm down, with the hope that it at least remains positive.

The remaining three risk ratios are above where they were a year ago.

Returning To Investing Roots: 5 August 2024