Pauling Portfolio Review: 29 May 2025

Columbine

Keeping it simple is the mantra of the Pauling portfolio.  Only a few ETFs are used to populate the Pauling.  As with several other portfolios using a truncated asset allocation management model preservation of capital is paramount.  I have one Trailing Stop Loss Order of 4.5% placed under the 22 shares of VOO.  If these shares are sold the cash will be invested in SHV.

BPI Note:  If you are managing a Sector BPI portfolio, Communications sector turned overbought.  The BPI is 75% so I set 2.5% TSLOs under VOX for the three Sector BPI portfolios.  If your broker does not permit decimal TSLOs, then use 3.0% as the Trailing Stop Loss Order.

Pauling Security Holdings

Below are the current holdings in the Pauling portfolio.  As mentioned above, a TSLO is set to sell all shares of VOO.

Pauling Performance Data

Since early 2022 the Pauling lags the AOR benchmark.  And the delta is quite great.  When this poor performance is on going I look to the Risk Ratios to see if there are any recent gains.  Always looking for any positive signals.

Pauling Risk Ratios

The glimmers of hope are several. 1) The Sortino Ratio moved up.  2) We see a slight improvement in the Jensen Alpha Ratio.  3) The slope of the Jensen is still positive.  The slope will likely go negative when we clear July unless there is significant gains in the Jensen Performance Index.

Comments are always welcome.

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