Bodie house located in the Ghost Town of Bodie, CA
Even though CEFs have taken quite a hit recently, the Huygens continues to outperform the S&P 500 and when last updated ranked in the top quartile of the 15 portfolios tracked here at ITA. How is the portfolio surviving in this volatile market? Follow along with the analysis below.
Huygens Investment Quiver
Below is the current investment quiver and holdings of Closed-End-Funds (CEFs) for the Huygens. All current holdings are generating income in excess of 8.0% so no changes are planned for this account.
Huygens Performance Data
Over the past 14.5 months the Huygens has opened up a significant lead on the S&P 500 as well as other possible benchmarks. The goal is to hang on to this lead for the foreseeable future. The current IRR data does not include first quarter dividends, expected to be significant.
Huygens Risk Ratios
As with most portfolios, the rough year of 2022 is evident in the risk ratio data shown below. Of particular importance are the positive values for the Jensen Alpha and Information Ratio. The Jensen tells us the portfolio is outperforming the benchmark based on the underlying risk involved in the makeup of the portfolio. The Information Ratio is a straight forward number telling us the portfolio is outperforming the benchmark.
The negative information is the negative slope of the Jensen. It may be another year before we see the Jensen slope (-0.46) turn positive. It is difficult to turn this “ship” around.
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