Huygens Income Portfolio Reviewed: 19 May 2023

Pet Store Window

Huygens is the income oriented portfolio up for review this morning.  Since dividends play such an important role in this style portfolio, it is best to use this approach with tax deferred accounts.

Huygens Investment Quiver and Holdings

Below is the investment quiver for the Huygens and the Closed-End-Funds currently held in the portfolio.  The goal is to see a yield in excess of 8%.  Currently, the Huygens yield is 11.5%.

Huygens Performance Data

One year ago the Huygens was outperforming AOR by approximately seven percentage points.  Today it is lagging AOR as one can see from the following data.  It is over this time period that the Huygens has been invested in Closed-End-Funds.  Despite the high yield, capital growth has lagged significantly.  If this lack of performance continues, I’ll likely make a change in the management style.  In other words, the Huygens is on notice.

Huygens Risk Ratios

The decline in the Jensen Alpha value over the past year tells the sad story of this portfolio.  Here in May we see the Information Ratio dip into the red for the first time.

I plan to give the income management style a few more months.  Second quarter dividends may pull the Information Ratio back into positive territory so we have 1.5 months to see some improvement.