Painted Hills
As mentioned in the last review, this is an update of the Huygens. Huygens is one of nine portfolios built around the investing model of Asset Allocation. The Schrodinger is another such portfolio. With the Huygens, and those I watch over, I primarily use Vanguard ETFs as they are inexpensive and do a good job of tracking the indexes they are designed to mirror.
If you have further interest in this investing model, I suggest reading books by William J. Bernstein and Richard Ferri. Search these names on this blog for further information.
Huygens Asset Allocation Model
Below is the Huygens portfolio. This morning I sold all shares of VTI as stock in this ETF can be found in VOO, VO, and VB. I don’t see inflation as an issue at this point so I want cash from TIP to be use to beef up equities.
I need to remove TIP and VTI from the portfolio or move the Max AA to zero for these to asset classes. I forgot to do that in this screenshot.
Huygens Rebalancing Recommendations
Limit orders are in or are already struck (see purple arrow) for the ETFs out of balance. In each review this screenshot is the one used to bring each asset class back into balance. A balanced position for a portfolio of this size means we want the Out-of-Balance percentage to be within + or – 0.5% of the recommended percentage.
Huygens Performance Data
Since 12/31/2021 the Huygens has outperformed the AOR benchmark by a significant margin.
Huygens Risk Ratios
We now have seven months of data using the AA investing model. This is insufficient to draw any conclusions. However, all risk measurements are positive for October and that is good enough at this point.
Questions and Comments are always welcome. Place your ideas in the Comment section provided with each blog entry.
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