Newton Portfolio Update: 14 May 2011

This week 200 shares of VWO were added to the Newton to push emerging markets closer to a balanced position.  It will require another 900 shares to bring the asset class into balance.  Two hundred shares of NLY were also purchased and this did bring Large-Cap Value within the 25% threshold limit even though this asset class could still use another 200 shares of VTV to bring it up to balance.  Limit orders were struck for both these holdings.  Checking this afternoon, I see where there are still 11 limit orders to buy various ETFs and two sell orders.  Both the sell limit orders are placed to get rid of SDS should the market decline sufficiently.  Regarding SDS, it looks to be a big mistake, at least when I made the move to hedge the portfolio against further rise.  My timing was off, as seems to usually be the case.  I'll likely hold SDS through the summer and part with it if shares are not automatically sold sometime this summer or early fall.

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Portfolio Performance: 13 May 2011

Since the last performance update, most of the portfolios gained ground when compared to the ITA Index, our customized benchmark.  However, nearly all portfolios lost ground to the VTSMX benchmark.  These minor losses can be explained by the strength of the U.S. equities market when compared to portfolios that are diversified with investments from all over the globe.

A new portfolio, the Franklin, was added to the table this week.  Launched on 5/6/2011, it will be months before we are able to set up a complete asset allocation plan.  My current thinking is to let this portfolio run with the existing assets until after the second quarter.  At that time the portfolio will undergo a fresh analysis to see if any changes need to be made.

Overall, most of the portfolio continue to do well.  Indicators to watch are the Sortino and Retirement ratios.  The goal is to see these uncertainty measurements remain above zero or at the very least, stay close to zero if they are negative.

Portfolio Performance - 05/13/2011

Portfolio Last Update Launch Date Tracking Tool Port. IRR ITA Index Diff Port. vs. ITA Index VTSMX IRR Diff. Port. vs. VTSMX Index IR SR RR
AA-Mosaic 04/29/2011 07/21/1999 Captool 3.09% NA NA 3.0% 0.09% 0.05 NA NA
Curie 05/13/2011 12/26/2007 TLH SS 5.9% 0.4% 5.5% 2.3% 3.7% NA 11.1 3.8
Mosaic2 04/29/2011 07/19/1999 Captool 5.27% NA NA -0.58% 5.85% 0.15 NA NA
Newton 05/13/2011 06/02/2008 TLH SS 10.3% 13.3% -3.0% 8.7% 1.6% NA 1.1 1.1
Passive Port. 04/29/2011 12/01/2000 Captool 5.83% NA NA 3.35% 2.48% 0.70 NA NA
Schrodinger 05/13/2011 12/01/2000 TLH SS 5.4% 5.1% 0.3% 3.5% 2.0% NA 3.9 1.4
Jane 04/29/2011 02/14/1997 Captool 9.60% NA NA 2.94% 6.66% 0.54 NA NA
Einstein 05/13/2011 06/30/2008 TLH SS 15.3% 17.6% -2.3% 12.2% 3.1% NA 4.9 4.9
Gauss 04/29/2011 02/19/1997 Captool 9.74% NA NA 2.91% 6.83% 0.23 NA NA
Kepler 05/13/2011 11/01/2008 TLH SS 20.4% 22.6% -2.3% 20.7% -0.4% NA -0.19 -0.19
Scrappy 04/29/2011 08/14/2008 Captool 14.54% NA NA 7.0% 7.54% NA NA NA
Bohr 05/13/2011 08/14/2008 TLH SS 13.2% 13.4% -0.2% 6.9% 6.3% NA 3.1 3.1
Kenilworth 05/13/2011 08/18/2010 TLH SS 21.7% 24.5% -2.8% 30.8% -9.1% NA -0.06 -0.06
Franklin 05/13/2011 05/6/2011 TLH SS -1.8% NA NA -1.5% -0.2% NA -0.05* -0.05*
Projects 04/29/2011 12/01/2000 Captool 5.97% NA NA 3.03% 2.94% 1.33 NA NA
Washington 04/29/2011 06/18/1999 Captool 3.27% NA NA -0.18% 3.09% 0.28 NA NA
Maxwell 05/13/2011 12/25/2000 TLH SS 1.0% 9.7% -8.7% 4.9% -3.9% NA -0.15 -0.15
Adams 04/29/2011 06/18/1999 Captool 3.72% NA NA 3.05% 0.67% 0.72 NA NA
Euclid 05/13/2011 06/30/1999 TLH SS 1.9% 9.8% -7.9% 5.1% -3.2% NA -0.14 -0.14
Jefferson 04/29/2011 03/13/2008 Captool 6.82% NA NA -2.97% 9.79% NA NA NA
Madison 05/13/2011 03/13/2008 TLH SS 6.0% 16.2% -10.2% 10.9% -4.9% NA -0.20 -0.20

* Indicates too little data to be meaningful.