Gauss Portfolio Review: 5 March 2026

American Kestrel

Gauss is the portfolio up for review today.  The owner of this portfolio is not contributing significant amounts of cash each month so the re-balancing will need to come from dividends and interest income.

Gauss is a very conservative portfolio as one can see from the low beta value of 0.27.  Conservative is defined in this case as low volatility.

Gauss Portfolio Holdings

Below is the current asset allocation for the Gauss.  In the far right hand column we see a number of ETFs are out of balance.  Rather than sell ETFs above target, I will slowly begin to purchase shares that are below target.  One of the investment goals this year is to reduce portfolio churning.  Should we find ourselves in a recession, this could all change as I have Trailing Stop Loss Orders (TSLOs) in place to protect capital.

Gauss Rebalancing Recommendations

Limit orders are in place to purchase mores shares of SCHD, VIG, and VWO.  First quarter dividends will be in by the time Gauss is next reviewed.  This will provide additional cash to bring SCHD closer to its target percentage.

Gauss Performance Data

Since 12/31/2021 the Gauss has performed quite well.  Only the S&P 500 (SPY) is outperforming the Gauss.  Based on the current diversification, I don’t anticipate the Gauss ever outperforming the S&P 500.  That could change if there is a major draw-down in the stock market and bonds hold up.

Gauss Risk Ratios

Other than the Information Ratio, risk values for the Gauss are all above where they were a year ago.

The Jensen Performance Index has been quite steady over the past year.  The modest positive slope (0.08) is moving in the right direction.