McClintock Portfolio Review: 27 January 2023

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McClintock, one of the two Dual Momentum™ portfolios, has been one of the better performers over the years I’ve used this investing model.  Of the seven different styles of investing, Dual Momentum is one of the easier to understand and manage, particularly if you have the Kipling spreadsheet installed and operating.

In addition to the Dual Momentum the other six investing models are:  1) Invest only in U.S. Equities as explained in the Copernicus.  2) Robo Advisor or computer managed model as tracked with the Schrodinger.  3) Growth and Income model as used by the Bethe and Bohr portfolios.  4) Strictly income model as demonstrated with the Huygens, Newton, and Curie portfolios.  Only the Huygens is reviewed in detail.  Closed-End-Funds are used with these three portfolios.  5)  Relative Strength or Relative Momentum model used by the Einstein and Kepler portfolios.  6)  Sector BPI model or the newest approached applied with the Carson, Franklin, Gauss, and McMillan.

McClintock Dual Momentum Recommendation

International equities (VEU) continues to be the recommendation for the McClintock.  The McClintock continues to hold a few shares in U.S. Equities and I’ll likely reset the TSLOs for those holdings.  With the debt limit debate still hanging over our heads, I don’t mind hold cash, short-term treasuries, or TIPs (SCHP).

Note I am using the default look-back settings.  See the green arrow.

McClintock Performance Data

Over the past 13 months the McClintock continues to hold a commanding lead over the AOA benchmark and an even greater delta over the S&P 500 (SPY).

McClintock Risk Ratio

Despite a lowering of the risk-free interest rate, the Jensen Alpha metric dropped this month.  This decline flattened the slope of the Jensen.  Even more telling is the decline of the Information Ratio as this number tells us how well the portfolio is performing with respect to the AOA benchmark.  While any positive value is good, I don’t like to see such a decline as 0.22 is the lowest value over the past 13 months.  This is something we need to pay attention to when the McClintock is reviewed in February.

McClintock Portfolio Review: 10 June 2022

Look for a post tomorrow on Portfolio Performance comparisons.  I’m interested in knowing how the different models, when portfolios are grouped together, perform.  In other words, which investing approaches are working best based on Internal Rate of Return (IRR) results.