Kepler Portfolio Update: 3 November 2025

Mammoth Hot Springs

Kepler and Hawking are the two portfolios here on the ITA blog that are using Closed-End-Funds (CEFs) to populate their respective portfolios.  In general we are looking for CEFs that are priced at a discount and throw off a dividend of ~8% to ~12%.  Sometimes the yield will be outside these percentages.

If you are following the CEF model and have suggestions for CEFs other than what you find in the Hawking or Kepler, post the ticker symbols in the Comment section provided below.

Kepler Asset Allocation

Below readers will find the current list of CEFs used to populate the Kepler.  I expanded the list by a few securities, but do not have available cash to bring all CEFs up to target.  As dividends show up from month to month, that money will be used to bring securities currently below target up to the recommended percentage.  The goal is to hold four percent (4%) in each CEF.

Kepler Rebalancing Recommendations

The cut and paste software is causing problems and that is why all the header information is included.

There is very little cash available so purchase of more shares is limited.

Kepler Performance Data

While the Kepler has been using CEFs for only a few weeks, the following IRR data goes back to 12/31/2021.  Since that time the Kepler has lagged all possible benchmarks tracked here at ITA.  Cash was withdrawn at a critical time.  It is difficult to keep up the the S&P 500 if one ever needs to sell holdings for cash.

Kepler Risk Ratios

Since last summer the Jensen Alpha value has remained stuck in the -4 to -5 range.  Now that I have moved to the CEF model it will be interesting to see how the Jensen performs from month to month.  Pay close attention to the Jensen and Information Ratios.

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