Sep 17
Portfolio Performance Update
The following information is normally published on Premium Content, but today I thought I would show the data for the seven portfolios under management. In the last four portfolios, beginning with AA-Mosaic, the portfolios are young and still under construction. Don’t pay much attention to the percentage figures as the IRR values are exaggerated due to the short time in existence.
The Passive Portfolio (PP) is coming up on its eighth birthday at the end of November. This portfolio received an infusion of new cash and that has yet to be recorded. Depending when that cash was inserted, the IRR value for the VTSMX benchmark will change. I do have Risk data for this particular portfolio, and as you will recall, it is very low. The Information Ratio for this portfolio is unusually high, a very good sign of a well managed portfolio. The asset allocation percentages are available upon request over on Premium Content.
Colter is an older portfolio that went through the transition of moving to ETFs from an entirely stock portfolio. Before this move, the portfolio was trailing the VTSMX benchmark. Here is partial proof that index investments and asset allocation work to the advantage of the small investor.
The AEM portfolio, nearly two years old, is the one portfolio that is balanced between value and growth rather than tilting the assets toward the value side of the equity spectrum. This portfolio also holds a small position in bonds.
The remaining four portfolios are all less than a year old. Hence the exaggerated IRR values. The one relative disappointment in the group is the Mosaic2 portfolio. It is the only portfolio not outperforming its benchmark. This portfolio has been hurt by the dip in international (developed) and emerging markets. It will take considerable care to get this portfolio performing at a level higher than its benchmark.
Looking at the infant portfolios, one can tell what a mess the market has been over the last ten months.
Portfolio Performance
| IRR | VTSMX | |
|---|---|---|
| PP | 5.1% | 2.0% |
| Colter | 0.6% | 0.3% |
| AEM | -5.7% | -6.2% |
| AA-Mosaic | -13.6% | -18.6% |
| Mosaic2 | -44% | -32.9% |
| GLW | -17.7% | -22.8% |
| Scrappy | -12.3% | -50.3% |
Lowell Herr
Photograph: Celebrity Cruise Line logo
Premium Content subscriptions are available for $6.99 per month.