Huygens Income Portfolio Review: 22 June 2023

SR 71 or Blackbird Engine

Huygens is an income oriented portfolio built around high income Closed-End-Funds (CEFs).  Other than generating income, the performance is lack luster, thus requiring some special attention after the second quarter dividends are paid out.  As cash mounts I’ll be purchasing shares of securities recommended from the ETFs list ESGV through BND.  See the following screenshot.

Currently, the market is maintained by mega-cap companies with strong balance sheets.  Small- and mid-cap stocks are not participating to the same level.  We see this through the eyes of the Bullish Percent Indicators of the NYSE and NASDAQ.  I’ll update the BPI data tomorrow, but don’t expect these two major indexes to show BPI percentages much above the 50% level.

Futures are down this morning as I write this.

Huygens Investment Quiver

Below is the current investment quiver and holdings for the Huygens.  While the yield is very high (11.3%), this is not sufficient to offset the declining growth rate of the CEFs.

Predictions for equities is not all that optimistic for the next six months so it may not be a bad time to hang on to cash so as to pick up shares at lower prices.  I have a number of limit orders in place to sell off a number of the CEFs listed below.

Huygens Performance Data

Over the past 18 months the Huygens has not performed up to expectations.  We are coming up on the second quarter dividends so that will give a boost to the overall value of the portfolio, but it is not going to alter the IRR value to any significant degree.

Huygens Risk Ratios

The current June values are a shadow of what they were a year ago.  This is why this portfolio will receive a lot of attention over the next few months.