Inquisitive Goat
This morning the Sector BPI Gauss portfolio is up for review. As readers will recall, no sectors are currently oversold so no buy or purchase recommendations are eminent. Energy was very close when last checked so I have a limit order in place for VDE with a price well below the current price.
While the Sector BPI investing model is relatively new, I now have 28 months of data for one portfolio (Carson). The Gauss goes back to late November and early December of 2022 so we are coming up on two years of history. In each of the five Sector BPI portfolios (Carson, Franklin, Gauss, McClintock, and Millikan) there has not been one disappointment. All are more than meeting expectations laid out when this investing hypothesis was first set in motion. Follow along to see how well the Gauss is performing.
Gauss Securities
Below is the investment quiver and current security “arrows” for the Gauss portfolio. Technology (VGT) was purchased a few weeks ago and then recently moved up into the overbought zone. I set a 3% Trailing Stop Loss Order (TSLO) and that was recently struck so the Gauss no longer holds VGT. Profit from VGT has been extraordinary.
Gauss Manual Risk Adjustments
As mentioned above, Energy is close to the oversold zone so I have a limit order in place to pick up another 10 shares of VDE. If those 10 shares are purchased Energy would hit the recommended percentage of 11.6% of the portfolio.
VIS is a shard holding that I will ignore for the present.
Gauss Performance Data
Since 12/31/2021 the Gauss has outperformed the SPY benchmark by nearly one percentage point. The gap is even wider on the other potential benchmarks I track. As experienced investors are aware, outperforming the S&P 500 is most difficult to accomplish.
Gauss Risk Ratios
Since May of this year all risk measurements are positive. The Jensen Alpha or Jensen Performance Index is barely positive. The high (5.12%) risk-free interest rate is putting downward pressure on the Jensen. Were interest rates to drop we might see an uptick in the Jensen.
Putting the Gauss up against the S&P 500 is setting a high bar for performance.
Gauss Sector Portfolio Report
The Gauss has been employing the Sector BPI investing model since early December of 2022. Since launch the Gauss has an IRR for this Period of 76.7% while the SPY returned a robust 36.3%. We can thank Technology for the fine performance. Once more, the Sector BPI hypothesis is working very well.
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