Millikan Sector BPI Portfolio: 25 March 2024

Mt. Hood – 1956 – Sno-Cat at 9,600 ft. – Scanned slide

Millikan is the Sector BPI portfolio up for review this morning.  Earlier I checked the sector BPI percentages to see if either Staples or Utilities moving into either the oversold or overbought zone.  No moves requiring any decisions showed up this morning.

Of the three basic investing models I’m using with the ITA portfolios, the Sector BPI model is the most complicated and I’ve tried to keep it as simple as possible.  The two basic rules are:

• Buy when the sector BPI is oversold or when the sector hits a bullish Point and Figure (PnF) percentage of 30% or lower.  It is easiest to understand this rule when it occurs and I activate it in a blog post.
• Sell when the sector BPI is overbought or when the sector hits a bullish PnF percentage of 70% or higher.  Along with the sell order, place a 3% TSLO under the sector ETF to be sold.

No actions on the sector front is required of the Millikan this week.  With $3,459 in cash, what do we do with this money?  Follow along to answer this question.

Millikan Investment Quiver and Holdings

Below is the current holdings within the Millikan portfolio.  We are below the “ideal” percentage for VPU and above the recommended percentage for VDC.  No changes are planned for any of the sectors or sector ETFs.

Millikan Manual Risk Adjustments

In the manual risk worksheet below I adjusted the SD Multiplier to 1.74 so the Stop Loss percentage for VTI is locked in at 8.0%.  This move is made to limit portfolio risk.

The recommendation is to add 12 shares of VTI to the Millikan.  To follow this recommendation I have multiple limit orders in place to purchase 12 shares at different prices.  Limit orders for VTI is how we put excess cash to work.

Millikan Performance Data

Since 12/31/2021 the Millikan has outperformed the SPY benchmark and it soundly defeats all other potential benchmarks.  The Sector BPI investing model was first used with the Millikan beginning in December of 2022 so we have over a year of data.  More on the performance over the past 15.5 months is shown in the last screenshot.

Millikan Risk Ratios

All five risk metrics are in positive territory, a success.  The slope of the Jensen Alpha is flat so the portfolio is holding its own on a risk adjusted basis.

While the Information Ratio is close to zero, it did not touch the zero mark over this past year.  That is another positive reference for the Millikan.

Millikan Sector Portfolio Report

Beginning in December of 2022 the Millikan has returned 47.8% when we examine the eleven sectors plus VTI and VOO.  The IRR for Period is nearly 20% points higher than the SPY benchmark.  The Sector BPI investing model is definitely working very well for the Millikan.

Millikan Sector BPI Update: 20 July 2023

Tweaking Sector BPI Plus Investing Model: Part II