The Hawking Portfolio is strictly an “Income” Portfolio with a target return from distributions of at least 8%. Over the past month, TSLOs were hit on four of the funds held in the portfolio (EXG, EOD, IGD and BGB) and current performance looks like this:
Thus, we have seen an ~8% maximum draw-down since the highs in November and this means that yields are presently running relatively high. The screenshot below shows current holdings with projected yield calculated as ~10.4% of current portfolio value (although this is distorted by the unrealistic 63% yield shown for SSSS).
I was a little surprised that four TSLOs were hit – considering that these were set at 3 SD from the highest price reached and, statistically, these only have a 0.3% probability of getting hit. The stops were hit on sharp spikes down (with rapid recovery) – so I suspect some degree of manipulation by big institutional players. However, my broker has solved the problem for me by cancelling all my existing TSLOs.
I chose to replace shares held in EXG and EOD and added positions in two new CEFs – BRW and EIC. The portfolio is therefore almost 100% invested as we HODL (Hold-On for Dear Life) for next month’s distributions.