Huygens Portfolio Review: 18 April 2023

Grand Tetons looking across frozen Jenny Lake.

Huygens is strictly an income generating portfolio, patterned after Steven Bavaria’s Income Factory model.  Thus far these income portfolios have generated adequate income, but the underlying value of the securities have not kept pace with the stock market.

Huygens Investment Quiver

Below is the current investment quiver and holdings for the Huygens portfolio.  As constructed the Portfolio Income equals 11.0% or well above the 8% threshold.

When selecting CEFs the two primary screens are:  1) Generate a yield of 8% or higher.  2) The CEF must be priced below its Net Asset Value (NAV).  I prefer CEFs that are not leveraged more than 25%, but 1 and 2 are the primary screens.

CEF Connect is the site use to screen for CEFs.

Huygens Performance Data

Over the past 15.5 months the Huygens shows an annualized IRR of -6.5% while SPY is down 9.1% (-9.1%).  Of the investable benchmarks, Huygens is on top of the performance pile.

Huygens Risk Ratios

For only the second time in a year the Huygens has a negative value.  Part of this downward pressure is related to the higher yield in the risk-free short-term treasure, now back up to 1.98%.

It is encouraging to see the Information Ratio still positive.  Continue to watch the Jensen and Information numbers as they are most important.

Questions and Comments are always welcome.  Post in the Comment section provided below.