Huygens is another Asset Allocation portfolio that was launched in April of 2024. In a few months we will have one year of data which will begin to provide some clues as to how well this particular array of assets perform. If 2025 turns out to be as volatile as I anticipate, the coming months will turn out to be a secondary test to this AA portfolio.
Currently the Huygens is holding nearly 6% of the portfolio in cash. Limit orders are in place to rebalance the portfolio as I recently made a few adjustments in the Strategic or Max AA percentages. I am reducing the international stock percentage and increasing the percentages to U.S. Equities.
Huygens Asset Allocation Model
Below is the newly adjusted asset allocation percentages. The far right-hand column shows how far out of balance specific ETFs are and later I show how I will begin to work to bring the various assets into balance. For a portfolio of this size I prefer each asset class to be within one half of one percentage point (0.5%). Several asset classes lie outside this goal and that is what I will be working on over the next several months, particularly at the end of each quarter when dividends are paid.
Huygens Rebalancing Recommendation
The following limit orders (6th column from the right) are in place to begin to bring several asset classes into balance.
Huygens Performance Data
Since 12/31/2021 the Huygens is outpacing the AOR benchmark, but woefully behind the S&P 500 ETF, SPY.
Huygens Risk Ratios
That last column should read January. It is so early in the month the values can be neglected. Pay more attention to the December 2024 data and you will see the last month was not a strong one for the U.S. stock and bond market.
The December 2024 values show improvement since April 2024 or when this investing model was initiated. There is nothing particularly unique about this asset allocation approach to investing. This is how most passively managed portfolios are constructed, including the Schrodinger.
Returning To Investing Roots: 5 August 2024
Huygens Asset Allocation Portfolio Review: 10 April 2024
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