Huygens Portfolio Review: 25 August 2023

For the love of old barns.

Huygens is the portfolio scheduled for review this morning and there are a few changes in the works.  To keep up with the S&P 500 I am moving this portfolio toward an equity bias.  In other words, I’m building up shares in VOO, SPY, VTI, and ESGV.  When international equities are in favor I’ll add shares to VEA and/or VWO.  Bond ETFs AGG and BND are available when equities are under stress and if the market is in total collapse there is always SHV, BIL or the money market.  With money markets paying around 5.0% cash is no longer the drag it was a year or so ago.

Huygens Investment Quiver and Holdings

The Huygens currently holds a number of Closed-End-Funds (CEFs) as shown below in the investment quiver.  I have limit orders set to sell off those CEFs and invest in equities such as ESGV, VOO and SPY.

Huygens Security Recommendations

With the investment model set to LRPC and a long-term look-back combination of 100- and 252-trading days, all the U.S. Equities ETFs are recommended for purchase.  The one equity recommending a Sell is VEA.  VEA is the developed international ETF.

Huygens Manual Risk Adjustments

I placed a TSLO of 3.0% under VEA so it will be sold out of the Huygens portfolio should the price drop 3.0% below the current price.  Should VEA move higher, the underlying TSLO will also move higher.  I assume readers know how TSLOs work.  If not, ask in the Comment section provided below.

In the above screenshot readers will see that ESGV ranks #1 based on the fourth column from the left.  When more cash becomes available I plan to add more shares to the current 85 held in ESGV.

Huygens Performance Data

Over the past 19 months the Huygens is slightly behind the S&P 500 (SPY) benchmark and ahead of the other five potential references.  Readers must be exhausted from hearing how difficult it is to best SPY.  Yet it is true and you can see it each time a portfolio is reviewed.

Huygens Risk Ratios

Over the next few months follow the Jensen Alpha value and the slope of the Jensen.  The goal is to flip the negative slope to positive.

The Information Ratio shows the Huygens gained a little ground on the SPY benchmark over the past few months, but it is still far behind where it was during much of 2022.

Tomorrow I’ll post the weekly Bullish Percent Indicators and before long I plan to post the relative portfolio performance data.  I expect the top portfolios will be:  Copernicus, Carson, and Schrodinger.