Olympia Harbor – Southern Finger of Puget Sound.
Welcome to the Summer of 2025. Since computers make all decisions related to the Schrodinger, the weekend is an appropriate time to update this portfolio. Since the last review no changes were made other than to pick up a few dividends. In the next Schrodinger portfolio review second quarter dividends will appear and the hope is the Schwab computers will being to invest some of the available cash.
Schrodinger Asset Allocation
Below is the current asset allocation for the Schrodinger. I expect the Schwab computers will begin to build up shares that currently occupy small percentages such as SCMB and USRT.
Schrodinger Performance Data
Since 12/31/2021, or what I use as the launch date for portfolio comparisons, the Schrodinger continues to outperform all benchmarks. Of particular significance is the delta between the Schrodinger and the S&P 500 ETF, SPY.
Schrodinger Risk Ratios
Based on the four risk factors, the Schrodinger is not all that risky. All current metrics are above where they were a year ago with exception of the Sortino Ratio.
When a portfolio is not holding excess cash, the Treynor Ratio carries more meaning as beta is not such a dominate factor.
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One critical point I keep forgetting when I post these updates and that is to keep adding new cash to the portfolio. It is not unusual for a portfolio to decline shortly after launch and the investor is then disappointed. Take a different viewpoint. Should the portfolio value decline, take advantage of the decline and add new money. The computers may not immediately purchase more shares, but at some point the cash is sufficient to “require” the purchase of more shares. Those shares are purchased at a lower price and will become more value if and when the portfolio value begins to rise.
Conclusion: Keep saving if at all possible.
Lowell