Pauling Asset Allocation Portfolio Review: 25 October 2024

Monochrome image

Pauling is new to the Asset Allocation (AA) model as of April of this year.  Moving the portfolio to the AA model is a swing back to my historical investing roots.  Portfolios such as this one are built to last or operate successfully for years.  Of the number of AA portfolios the Pauling is the first one to come close to being in balance.  There are still a few asset classes that are under target.  Before the end of the year I anticipate the Pauling will be very close to seeing nearly all asset classes within the 1.0% of the uncertainty limit.

Pauling Asset Allocation Model

Below is the current investment quiver and holdings for the Pauling.  Available cash will be used to purchase shares of BND, VWO, and TLT or the three ETFs most under target.  VB and VO are slightly above target and there is a limit order in place to sell all shares of TIP.

Pauling Rebalancing Recommendations

The Pauling is very close to hitting on all cylinders as most of the asset classes are at or close to target.  The Shares Required column shows readers where the emphasis is placed.  Limit orders are in place to rebalance the Pauling.

Pauling Performance Data

The Pauling lags the AOR by a small margin.

Pauling Risk Ratios

Where is the Pauling going?  That will be determined over the next few months.  While the Jensen Alpha dipped slightly since September, it is far superior to where it was for most of the year.  The slope of the Jensen indicates the growth is in the right direction.

Both the Sortino and Information Ratios measure improvement with respect to the benchmark.

Once the Pauling has all asset classes in balance, it will operate nearly on automatic pilot.  This is to be a passively managed portfolio.