McClintock Sector BPI Portfolio Review: 6 August 2024

Monument Valley

If you follow the Comments you were notified that Discretionary, Energy, and Technology dipped into the oversold zone.  As a result, I picked up ETFs of VCR, VDE, and VGT yesterday for the McClintock portfolio.  How well did the McClintock negotiate the recent draw-down?  Are we headed into a recession and what is the FED going to do about interest rates in September?  I don’t have answers to these questions so I’m sticking with the numbers as readers will see in the following review.

McClintock Security Holdings

Trailing Stop Loss Orders were struck thus shares of VTI and VOO were sold out of the portfolio.  To avoid the wash sale I’ve placed a number of buy orders for ESGV rather than buy back VTI and VOO.  If the orders do not go through by the September review I will cancel them and place orders for VOO.  The goal of all Sector BPI portfolios is to match or outperform SPY and do this without undue risk.

Note the holdings of VCR, VDE, and VGT come very close to matching the recommended asset allocation found in column 3 from the left.

McClintock Performance Data

The recent draw-down cost the McClintock approximately 2 percentage points.  However, since 12/31/2021 the McClintock is still hanging on to a slight margin over the SPY benchmark.  The lead is even greater over the actual S&P 500 index (4.8% to 3.8%).

Despite the recent hit, the McClintock is besting all possible benchmarks I am tracking using the Investment Account Manager software.

McClintock Risk Ratios

How is the McClintock performing on a risk adjusted basis?  I’m somewhat surprised to see improvement in the Jensen Performance Index since July.  Keep in mind it is still early in August so one need not get too excited over this increase.  It is also encouraging to see improvement in the Information Ratio.  The August positive value is the first in many months.

Another goal is to maintain a positive slope (0.11) for the Jensen.

McClintock Sector Portfolio Report

Since moving the McClintock over to the Sector BPI investing model in October of 2023, the portfolio holds a commanding 33.5% to 22.7% lead over the SPY benchmark.  This is not much of a history to go on, but the Sector BPI hypothesis seems to be working quite well for the five portfolios using this investing model.

Questions and Comments are always welcome.