St. Johns Bridge – Portland, OR
Today is the scheduled review for the Pauling, one of the poorest performing ITA portfolios. Since this portfolio continues to occupy the bottom quartile I am including the Sector Portfolio Report (5th or last screenshot) so readers can witness how the Sector BPI investment strategy is working for a less than stellar portfolio.
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Pauling Investment Quiver and Holdings
Below is the investment quiver for the latest Sector BPI revision. I recently sold off all shares of ESGV so we now confine our U.S. Equities investing to either VTI or VOO. Since the S&P 500 (SPY) is the benchmark, holding a majority of shares in VOO (or VTI) when no ETFs are part of the portfolio, we should be able to come close to matching or outperforming the benchmark.
Pauling Manual Risk Adjustments
No new recommendations are forthcoming from this Manual Risk Adjustment worksheet. However, there is quite a bit of cash available. While updating this post a few more shares of VOO were added to the Pauling. More limit orders are in place just in case the stock market declines further.
Pauling Performance Data
Since 12/31/2021 the Pauling continues to lag the SPY benchmark. Considering the 23% held in cash, this gap will only widen if the market continues to climb. If there is a correction (10% or greater drop) then the Pauling might begin to close the gap on the SPY benchmark. Regardless, this delta will be most difficult to bridge.
Pauling Risk Ratios
The Jensen Alpha is slowly improving, but we still need to see this ratio move into positive territory. With the Information Ratio still below 0.50 it is going to be difficult to move the Jensen Performance Index into positive territory.
Pauling Sector Portfolio Report
I only began using the Sector BPI investing model with the Pauling starting last October. The following data shows promise as the Pauling gained 22.01% since 10/1/2023 while the SPY benchmark returned 18.81%. While that is not a huge difference, at least the Sector BPI model is working to the benefit of the portfolio owner.
Managing a Sector BPI portfolio takes a little extra work. For those who prefer something simpler, check out the Copernicus.
Copernicus Portfolio Review: 29 December 2023
If even this is too difficult or takes too much time, move on to the Schrodinger as this is a painless way to invest for those who have little time and no interest in the stock market.
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