McClintock Sector BPI Portfolio Review: 25 June 2024

Yamhill, Oregon

McClintock is the Sector BPI portfolio up for review this morning.  As you will recall, Materials was down to 37.9% bullish or in the area where daily attention is required.  I checked this morning and there has been no change in the percent of bullish Materials stocks.  It continues at 37.9% bullish.

Now that we are in the summer months I don’t anticipate much action within the various sectors.  The presidential campaign might have some impact so we need to stay vigilant.

McClintock Security Holdings

Below are the current holdings in the McClintock portfolio.  Staples (VDC) is the only sector holding of note and we have held this ETF for many months.

McClintock Manual Risk Adjustments

With the available cash, limit orders are in place to purchase more shares of VTI.  I need to check, but I may also have an order or so in for VOO.  While $4,000 is not a lot of cash, it is nearly 14% of the portfolio and holding this much cash can be a drag on performance when the U.S. Equities market is moving up.

McClintock Portfolio Performance

We see the cash drag as the McClintock is nearly one percentage point behind the SPY benchmark when annualized.  Fortunately, the portfolio is performing much better than other potential benchmarks such as VTI, VT, AOA, and AOR.  Once more, it is difficult to outperform the S&P 500 and that is why I prefer to concentrate investments in VOO.

McClintock Risk Ratios

The Jensen Performance Index is far better than it was a year ago.  We do see a decline in the Information Ratio which indicates the McClintock is losing ground to the SPY benchmark.

McClintock Sector Portfolio Report

It is important to keep in mind that the McClintock has only been using the Sector BPI model for approximately 8 months.  We need a few years of data to see how this model will work for the McClintock.  It is a good test of the BPI model to check performance using different starting points.  If there is consistency in over performance we begin to gain further confidence in the model.

Another good check is to watch portfolios that require withdrawals.  In some ways this is not fair as these portfolios (Einstein is an example) need to hold cash for ultimate withdrawal and are therefore penalized when the market is moving up.  However, this is part of the investing experience.

Here are other examples of the Sector BPI investing model.

Millikan Sector BPI Update: 20 July 2023

Franklin Portfolio Review: 21 July 2023

Millikan Sector BPI Portfolio Review: 10 May 2024