Kepler Portfolio Review: 6 March 2006

Peruvian women spinning yarn.

Before moving into the Kepler update, I set limit orders for VCR in all three Sector BPI portfolios (Carson, Franklin, & McClintock) as the Consumer sector dropped within a whisker of the 30% oversold bullish mark.

Now for the Kepler update.  As one of the poorer performing portfolios, the asset allocation was altered to be more conservative several weeks ago.  The current market decline is beginning to work for the Kepler as the market draw-down is having less of an impact on this portfolio.

Kepler Asset Holdings

Below is the current asset allocation makeup of the Kepler.  As currently constructed the portfolio will throw off higher returns and resist market declines as the beta is a very low 0.2.

Kepler Rebalancing Recommendations

Other then SGOV the Kepler is in balance.  Note that I have a limit order to purchase mores shares of this ETF.  Once first quarter dividends are in and should cash be added to the account, all asset classes should be in balance by the next review.  In balance is when each asset class is within one percentage point of the target.  I am not concerned about securities above target, unless they move more than 5% above the target.  Should this happen, I will sell off shares, take the profit, and reinvest in asset classes below target.

Kepler Performance Data

The Kepler finally moved into positive territory when measuring the IRR.  Nevertheless, this portfolio is woefully below all tracked benchmarks.  Now that most of the necessary withdraws seem to be history, rebuilding the Kepler is a goal for 2026.

Kepler Risk Ratios

Most of the risk ratios are currently lower than they were a year ago.  However, we are beginning to see slight improvement, particularly in the Jensen and Information Ratios over the past several months.

The Sortino Ratio reveals the most improvement over the past year.

Kepler Portfolio Update: 19 December 2025