Huygens Portfolio Review: 23 October 2023

Japanese Garden

Huygens is another portfolio in transition to the Sector BPI model.  The plan is to have all these moves well in the process by November 1.  The goal is to simplify the investment quiver as much as possible.

Here are a two things I am looking for in a portfolio.

• Diversity:  ETFs provide this in spades.
• Capital Preservation:  The Sector BPI model does this.  This is where the Copernicus and Schrodinger portfolios are weak.

Huygens Investment Quiver and Holdings

Securities with the light blue background will eventually be sold out of the Huygens.  Limit orders are in place to populate all five oversold sectors.

Huygens Security Recommendations

None of the three U.S. Equities (VTI, VOO, or ESGV) are recommended for purchase.  The recommendation, based on BPI data, is to purchase shares in Discretionary, Staples, Materials, Real Estate, and Utilities.

Huygens Manual Risk Adjustments

The sector ETF orders are in place to populate the five oversold sectors.  The Huygens will need to be revisited before November as SPY is close to a sell and that cash needs to be reinvested.

Huygens Portfolio Data

Over the past 22 months the Huygens nearly matches the SPY benchmark.  This portfolio is a good reference to watch over the next several months to see whether the portfolio gains or loses to the S&P 500.  The Huygens and SPY are positioned at the same starting line.

Huygens Risk Ratios

In the last few months the Huygens picked up a bit of ground based on the Jensen Alpha data.  Until we clear the March data it seems unlikely the Jensen slope will turn positive.

Tweaking Sector BPI Plus Model: 20 May 2023