Huygens Asset Allocation Portfolio Review: 2 February 2026

Covid Period

Huygens is the classic asset allocation portfolio.  While the selection of asset classes will vary from portfolio to portfolio, as will the percentages allocated to each class, the principle of diversification is a long-standing model for portfolio management.

Late last year I reworked the asset allocations for the Huygens.  The goal is to provide growth while attempting to resist a major draw-down if and when we see a major market decline.

Huygens Asset Allocation Model

Below is the current asset allocation layout for the Huygens.  The income is a modest 2.36%.  Cash from the income will be used to keep the different asset classes in balance.  The goal is to never let an asset class dip below 3% from target and when possible keep the asset within one percentage point of the target.  The Huygens currently is meeting this goal.

Huygens Rebalancing Recommendations

Cash is very low so few purchases are either scheduled or required.  The Huygens is essentially in balance.

Huygens Performance Data

Since 12/31/2021 the Huygens has lagged the AOR benchmark by a small amount.  At this point we look to the Risk Ratio data to see if the portfolio is gaining or losing when risk enters the equation.

I still have yet to determine which assets are not identified in the following pie chart.  42% is a very large portfolio of the portfolio going unidentified.  Gold is part of this percentage, but not a large part.  For some reason the IAM software is not picking up certain ETFs.

Huygens Risk Ratios

Evaluating the risk ratios is key to knowing how well a portfolio is performing.  Most of the ratios indicate improvement since last April.

The Information Ratio is telling us the Huygens has slipped with respect to the benchmark.  Will the new asset allocation model reverse this trend is a key question?  It will take several months before we have an answer.

Comments are always welcome.

Huygens Recession Portfolio Review: 28 November 2025