Positioning The Millikan: 3 January 2023

Portuguese Explorers: Monument to the Discoveries.

Millikan is one of the portfolios in transition from the Relative Momentum model over to the Sector BPI model.  This blog explains where the Millikan is in the transition and how I am repositioning the portfolio.  It is really quite simple so follow along as I explain the process.

Sector BPI

At the close of today’s (1/3/2023) market I updated the sector BPI.  Don’t pay attention to the 1/6/23 date as that will come this Friday.  As readers can see from the left side of the table, only Technology (VGT) remains over-sold.  Millikan has the go-ahead signal to fill this sector and there are limit order set to bring Technology up to 25% of the portfolio.

Millikan Investment Quiver and Holdings

In the last few days several equities were sold and that is the reason for the high level of cash (>$43,000).  The Millikan currently holds 8.8% in Technology so we need to add more shares.  I have limit orders set to move the Technology (VGT) sector up to 25% of the total portfolio.

Millikan Performance Data

The following data runs from 12/31/2021 or January of 2022 through 1/3/2023.  Over the past year the Millikan lost 13.3% while the benchmark, AOA, lost nearly 17%.  Note that the S&P 500 (SPY) is down 19.5%.

Millikan Risk Ratios

The Jensen Performance Index declined over the past year and that is one of the motivations for moving over to the Sector BPI model.  We shall see if this “hypothesis” works out as the Sector BPI model has not been back-tested.

I’ll be keeping close tabs on the four Sector BPI portfolios as this experiment continues this year.