McClintock is the portfolio up for review this morning. Last week the utilities sector briefly dipped into the oversold zone and the McClintock was one portfolio fortunate to pick up sufficient shares of VPU to meet the 9.5% recommendation.
The market appears to be taking a pause and as such I’ve been placing TSLOs under the equities (VTI, VOO, and ESGV) in an effort to protect capital. The TSLO percentages I use generally range from as low as 3% to as high as 8%. I rarely go above 8% for a TSLO. The percentage is driven by the cash needs of the portfolio owner.
McClintock Security Holdings
Below is the investment quiver and current holdings in the McClintock. In late January all shares of ESGV were sold out of the McClintock as the TSLO was struck.
Utilities (VPU) is fully populated. Now we wait for this sector to reach the overbought zone. In the meantime VPU will throw off a nice 3.6% dividend.
McClintock Manual Risk Adjustments
No changes are planned to the McClintock this month. Cash is needed so no new investments in U.S. Equities.
McClintock Portfolio Performance
Since 12/31/2021 the McClintock closely follows the SPY benchmark. When holding nearly one-third of the portfolio in cash it is not surprising for the portfolio to fall behind the benchmark in a positive market.
McClintock Risk Ratios
The following table lays out the risks one takes with the McClintock. The Jensen continues to sport a positive slope despite falling behind the benchmark this month.
The Information Ratio is the metric one uses to compare how well the portfolio is performing with respect to its benchmark. Overall, the McClintock is in good shape.
- I’ve seen three of these Lockheed SR-71 planes. One at the National Air and Space Museum Steven F. Udvar-Hazy Center, a second in Hutchinson, KS, and the third only 45 miles from here in McMinnville, Oregon.
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Lowell,
I think that you were unlucky when your TSLO was struck for ESGV in January. In looking at low and high prices in that time period, the biggest decline I can find is 2.8 percent, from $85.50 on 12/28/2023 to $83.09 on 1/4/2024. ESGV has progressively moved up since then.
~jim
Jim,
Correct. That is one of the problems with setting TSLOs.
Just investing strictly in VOO is looking better and better, particularly since the expense ratio is now down to one basis point.
Lowell