Schrodinger Report: 11 February 2022

Lhasas boy waiting for his mother to sell her goods.

The Schrodinger Report is an update on the condition of this Robo Advisor portfolio.  Another term one might use to describe this account is the “Lazy Portfolio” as the owner does nothing except monitor the performance.  This is the report for the month of February.

Schrodinger Investment Quiver and Recommendations

Were the Schrodinger a managed portfolio using a one-year look-back with the LRPC investing model, four securities show up as a Buy.  In the case of this computer managed account, we hold all eleven ETFs.  No changes are anticipated until April, at which time dividends will be reinvested in particular ETFs based on the computer decisions.

Schrodinger Performance Data

Over the past 14.5 months the Schrodinger is generating a return of 15.9%.  Compared with 8.3% for the AOR benchmark, the 15.9% Internal Rate of Return is outstanding.  Now we need to see how this portfolio is performing when risk is part of the equation.

Schrodinger Risk Ratios

In January the Schrodinger took a 4.0% loss and that is showing up in the following table.  Jensen’s Alpha, at 9.65, is still very high and a slope of 0.6 is quite respectable.  Considering the risk this ~ 80/20 stock/bond ratio is taking, the Schrodinger portfolio is doing quite well.