Huygens Sector BPI Portfolio Review: 22 January 2024

Now that we passed the mid-way point in January I want to update all portfolios that were last reviewed in December.  The Huygens is one such Sector BPI portfolio.  Another reason for paying special attention to the Sector BPI portfolios is that many are carrying excess cash due to TSLOs being struck when the market declined in early January.  I want to put that cash to work.

Huygens Security Holdings

Below is a list of the current securities held in the Huygens.  Sixty percent of the portfolio is in cash and action is required.  Multiple limit orders are in place and I will initiate more after the market opens this morning.

Huygens Manual Risk Adjustments

No sectors are positioned in the oversold zone so no sector ETFs will be added to the Huygens.  What I’ve done is to raise the Maximum Portfolio Risk to a little over 10% so the recommendations for VTI, VOO, and ESGV will be greater.  When the portfolio risk is raised the spreadsheet recommends the portfolio hold more shares as shown in the 9th column from the left.

VOO with 90 shares is well above the recommended 53 shares.  No action needed with VOO.  VTI and ESGV are both well below their recommended number so I will place limit orders very close to the current price when the market opens this morning.  I need to add 70 more shares of VTI and 205 more shares of ESGV.  I tend to round up to the nearest five shares.

Huygens Performance Data

Over the past two years the Huygens lags the SPY benchmark by three percentage points.  The portfolio is topping both the AOA and AOR benchmarks.

Huygens Risk Ratios

One goal over the next few months is to either lower the negative slope value or better, flip it to a positive value.  Once the portfolio holds more equities these negative values should improve, assuming the stock market will move upward.

Huygens Portfolio Report

Huygens was another ITA portfolio late to the Sector BPI model.  Since the move last fall the model has an IRR for the period of 17.2% while the SPY benchmark returned 12.85%.  That is a sufficient delta to be significant.