Halloween Comes to Canby.
Pauling is another Asset Allocation portfolio settling in for a volatile 2026. As readers will see in the second screenshot, I sold shares of SHV in order to raise cash to rebalance the portfolio. More on the particulars later.
Pauling Asset Allocation Holdings
Before selling the majority of SHV the Pauling had only $2,000 in cash. Since this was far short of what was needed to bring the portfolio into balance, I sold 380 share of SHV as a cash raising effort.
Pauling Rebalancing Recommendations
Limit orders are in place to bring the Pauling into balance. The limit orders were set anywhere from a few cents below the current price to as much as $5.00 below the current price. I doubt a number of the orders will be filled until sometime next year.
Pauling Performance Data
Since 12/31/2021 the Pauling is trailing all possible benchmarks including AOR. The gap is sufficiently large to where it will be nearly impossible to close. In cases such as this one I refer to the Risk Ratios to see which direction the portfolio is moving.
Pauling Risk Ratios
Based on the Jensen Performance Index the Pauling is showing improvement since last March. However, the Information Ratio indicates the Pauling continues to lose ground to the AOR benchmark. Therefore performance is a mixed bag.
Based on the Sortino Ratio the portfolio is more valuable today compared to where it was a year ago. Of the four metrics, I pay most attention to the Jensen as that ratio provides data as to how well the portfolio is performing based on the underlying portfolio risk.
The above link shows the Pauling portfolio a year ago.
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It was a good day to be holding cash in treasuries. Is this the beginning of a draw-down or a short market movement? One never knows until several weeks pass.
TSLOs were hit on a number of equities this morning. I’ll be reporting on this information as portfolios come up for review over the next few week.
Lowell