Laws Railroad Museum – Bishop, CA
Huygens is the portfolio up for review this morning. If you checked the performance data published yesterday you will see that Huygens is one two portfolios not yet updated in September. The other is the Pauling and I will be working on it later today. The Bethe was updated on 9/28 and the data has yet to be entered into the performance spreadsheet.
Huygens is in a state of flux as I am migrating it over to a more growth orientation. The current holdings still include several closed-end-funds and I have limit orders in to sell all those shares.
Huygens Investment Quiver and Holdings
Below is the current investment quiver and holdings for the Huygens. As CEFs are sold the cash will be used to pick up shares of either domestic or international equities. If equities are out of favor bonds are another option.
Huygens Security Recommendations
Using the following worksheet from the Kipling spreadsheet, four equities are recommended for purchase. They are in ranking order: ESGV, VOO, VTI, and SPY. When using the LRPC investing model use the Rank shown in the 4th column from the left.
Huygens Manual Risk Adjustments
Following the ranking order from the above worksheet ESGV is first filled. The buy recommendation calls for adding another 180 shares to the existing 105 ESGV shares currently held in the Huygens. Then we move to VOO. Rounding to the nearest five shares I placed a limit order to add 4 more shares. VTI will use up the remaining cash and the recommendation is to purchase 60 shares. There is insufficient cash to bring VTI up to 106 (would round to 105) shares. Note that SPY already holds the recommended number of shares.
Huygens Performance Data
Over the past 21 months the Huygens trails the SPY benchmark by a fraction of a percentage point while topping both the AOA and AOR benchmarks by a similar small amount. The goal for the Huygens is to beat or hold very close to SPY.
Huygens Risk Ratios
Checking the Information Ratio, the Huygens is showing slight improvement since last May. Jensen’s Alpha is holding steady over the past few months.
If we see an improvement in the overall stock market, the Jensen should move into positive territory and there is a chance the slope of the Jensen will also flip from negative to positive. Expect the Huygens to closely track the broad stock market.
Look for the latest Bullish Percent Indicator data to be published tomorrow.
Discover more from ITA Wealth Management
Subscribe to get the latest posts sent to your email.
You must be logged in to post a comment.