The Millikan merits an interim look as 50% of the portfolio is in cash. With a little more emphasis on value and size, the investment quiver of the Millikan would qualify as a Factor oriented portfolio. Since size, value, and momentum are considered three primary investment factors, I’ll be taking a good look at this portfolio’s investment quiver over the next few weeks. Suggestions from readers are always welcome.
Millikan Investment Quiver
Below is the current investment quiver for the Millikan. My preference is to keep the size down to something close to 15 securities. If I were to move any of the ETFs out of the portfolio, the first to go is SH.
Millikan BHS Recommendation
With the model set to BHS and the maximum number of assets to include in the portfolio at any one time adjusted to five (5), the Buy recommendations are: VTI, SGOL, PCY, QQQ, and MTUM. This is an interesting blend of equity securities and lower volatility ETFs.
Millikan Risk Ratios
The Millikan is closing in on three years of data so the Sortino Ratio values are somewhat tempered, in contrast to the values for very young portfolios. The Jensen Alpha indicates the Millikan is picking up ground on its VTHRX benchmark. The Jensen and Treynor involve beta and the current 0.24 value is very low. If all recommendations were in place, the beta for the Millikan would jump to 0.8.
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