This morning I was in a discussion involving indexes, benchmarks, and portfolio risk. In one exchange, I asked the reader if he knew anyone who could tell him what risk was involved in their portfolio. Asking the question demanded an answer from me and the portfolios I track. Here are the latest risk percentages from the seven portfolios available to Platinum members.
The black or first percentage is the semi-variance where the IRR of the portfolio is measured with respect to the benchmark. The second or green percentage is the mean-variation or standard variation. Other than the Kenilworth, all are extremely low.
Also note that when a portfolio is performing better than the benchmark, the semi-variance percentage is lower than the SD percentage. The reverse is true when the benchmark is beating the portfolio..
Curie = 0.35% 2.5%
Newton = 1.05% 1.3%
Schrodinger = 0.53% 0.96%
Einstein = 1.02% 1.7%
Kepler = 5.94% 2.1%
Bohr = 8.59% 9.2%
Kenilworth = 170.8% 10.1%
What happened to the Kenilworth portfolio? It is very young and the VTSMX benchmark took off while this portfolio was under construction leaving it far behind.