Huygens Income Portfolio Review: 5 June 2023

Twin Rocks Outing – Oregon

Over the next few months watch for possible changes in how the Huygens is managed.  I’m less than impressed with the income approach, particularly as there are signs U.S. Equities may be ready for a positive run.  This particular portfolio is housed with TD Ameritrade and I was told the transition from TD Ameritrade to Schwab should be completed around Labor Day or shortly thereafter.

The management options are:

• Move the Huygens to a computer managed Intelligent Portfolio plan of management.
• Move from the income approach to the Sector BPI Plus model.
• Set up the Huygens with a similar management style used by the Copernicus.

Huygens Investment Quiver and Holdings

Below is the current investment quiver and holdings for the Huygens.  Rather than use the following worksheet from the Kipling for guidance, we have been populating the Huygens using the following directives using the CEF Connect web site.

• Find Closed-End-Funds yielding 8% or higher.
• Select CEFs that are priced below their Net Asset Value (NAV).
• Less important is to find CEFs with low leverage.  Low defined as < 25%.

Huygens Performance Data

Over the past 17 months the Huygens continues to lag all but the ESGV ETF.  At least the portfolio is within striking distance of the VTI ETF.

Huygens Risk Ratios

Looking over the past year of Jensen Alpha data, this spring has been rough on the Huygens.  It is the recent decline that is causing me to rethink how the Huygens is managed.  I don’t plan major changes until after the second quarter is complete as the portfolio will throw off a number dividends at that time.