Gauss Sector BPI Portfolio Review: 9 May 2024

Sunrise through the Hawthorne Bridge – Portland, OR

With 1.5 year of data, the Gauss portfolio is performing quite well using the Sector BPI model.  It appears as if the longer one uses the Sector BPI model the better the performance.  Market action during the last few years might be the contributing factor.  As I’ve frequently stated, we need to go through a few more sector buy/sell cycles before we move out of the hypothesis phase of this investing model.

Gauss Security Holdings

Below is the investment quiver and current holdings in the Gauss portfolio.  What to do with all the cash will be addressed below.  As with one or more of the Sector BPI portfolios, I missed the opportunity to fully populate Technology (VGT).  That sector was only in the oversold zone for one or two days.

Gauss Manual Risk Adjustments

Of the five equities available within the Gauss, only Emerging Markets (VWO) is a Buy.  VTI and VOO are both a hold so no additions are planned for these two equity Exchanged Traded Funds (ETFs).

Gauss Performance Data

Since 12/31/2021 the Gauss has a slight edge on the SPY benchmark. The other benchmarks trail by various percentages.  Since SPY is such a difficult benchmark to top, observant readers will see that I tend to favor VOO in nearly all the portfolios as it is a mirror security to the S&P 500.

Gauss Risk Ratios

The Jensen is only positive to the third decimal place.  The same is true with the slope of the Jensen.  In general, the Gauss has been tracking the S&P 500 closely over the past year.  The Information Ratio just underscores this fact.

Gauss Sector Portfolio Report

If we isolate the performance of the sectors since early December of 2022 we see the Sector BPI model is smashing the SPY benchmark.

At the bottom of the table readers will see data for the DJIA, S&P 500 and NASDAQ.

All this data comes from the Investment Account Manager software, a commercial product.

What Is Working?

The Argument for Self-Management