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We end an active week of portfolio reviews with an update of the McClintock. McClintock is one of the youngest Sector BPI portfolios with a 2-year history. Thus far the Sector BPI investing model is showing itself to be a very workable investing model. None of the Sector BPI portfolios went through the 2022 draw-down so we have yet to see how well one of these sector portfolio performs under adverse market conditions. The hypothesis under pinning this model argues all three will perform very well. 2026 may well be that test.
McClintock Sector Holdings
Below is the current sector makeup for the McClintock. Since the last review VCR and VGT hit their TSLO limits and were sold out of the portfolio. Of the three current sector holdings only Materials (VAW) is overbought. A Trailing Stop Loss Order (TSLO) is in place to sell VAW.
While the McClintock holds excess cash as no other sectors are oversold, I put the cash to use with purchases of RSP and SHV. SHV is the cautious move.
McClintock Performance Data
Since 12/31/2021 the McClintock has outperformed the AOR benchmark, yet is well below the outstanding performance of the S&P 500 (SPY). While I am not exactly rooting for a market correction, I am eager to see how the Sector BPI investing model handles a volatile market.
McClintock Risk Ratios
Checking on the risk ratios, all is going very well for the McClintock.
- The Sortino Ratio is at a high water mark for the year.
- The Jensen Alpha or Jensen Performance Index, our most important ratio, is at an excellent 2.57 mark.
- Treynor hit a year high. Treynor is the least important ratio.
- Information Ratio: Positive, but below its 2025 May high.
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Bohr and Kepler are the two portfolios up for review this coming week. Be sure to check out the asset allocation of the Kepler as it is set up to endure a major market draw-down.
I think nearly all the portfolios are set up for 2026. At this point it is just the job of maintaining them by keeping the asset classes in balance.
This past week we reviewed a Sector BPI portfolio, an equities only portfolio, and several asset allocation portfolios. The Schrodinger (Robo Advisor) portfolio will soon come up for another review. The Schrodinger is one portfolio of interest, should we soon see a market correction. The portfolio performed quite well through 2022 so it should do well over the coming years. If readers are not aware, the Schrodinger is managed by Schwab computers and the owner does nothing except add new money. Schwab also tax harvests this portfolio, should that be necessary.
Lowell