Portfolio Performance: 20 May 2011

While nearly every updated portfolio lost a little ground in absolute terms, all gained when compared to either the customized ITA Index, the Vanguard Total Market Index Fund (VTSMX), or one of the two uncertainty or risk ratios.  Absolute terms means that the Internal Rate of Return (IRR) of the portfolio declined.  While this is important, the relative measurements are more significant as those measurements tell the picture of how well the different portfolios are performing with respect to their benchmarks.  When I update a portfolio, I look for the Sortino and Retirement ratios, SR and RR respectively, to increase.

Portfolio Performance - 05/20/2011

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 05/20/2011 12/26/2007 TLH SS 6.0% 0.5% 5.5% 2.2% 3.8% NA 11.5 3.9
Mosaic2 04/29/2011 07/19/1999 Captool 5.27% NA NA -0.58% 5.85% 0.15 NA NA
Newton 05/20/2011 06/02/2008 TLH SS 10.2% 13.2% -3.0% 8.5% 1.7% NA 1.3 1.3
Passive Port. 04/29/2011 12/01/2000 Captool 5.83% NA NA 3.35% 2.48% 0.70 NA NA
Schrodinger 05/20/2011 12/01/2000 TLH SS 5.4% 5.2% 0.2% 3.4% 2.0% NA 4.0 1.4
Jane 04/29/2011 02/14/1997 Captool 9.60% NA NA 2.94% 6.66% 0.54 NA NA
Einstein 05/20/2011 06/30/2008 TLH SS 15.2% 17.5% -2.3% 12.0% 3.2% 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 05/20/2011 11/01/2008 TLH SS 20.2% 22.6% -2.4% 20.4% -0.2% NA -0.11 -0.11
Scrappy 04/29/2011 08/14/2008 Captool 14.54% NA NA 7.0% 7.54% NA NA NA
Bohr 05/20/2011 08/14/2008 TLH SS 13.2% 13.4% -0.2% 6.8% 6.5% NA 3.4 3.4
Kenilworth 05/20/2011 08/18/2010 TLH SS 20.5% 23.2% -2.7% 28.5% -8.0% NA -0.05 -0.05
Franklin 05/20/2011 05/6/2011 TLH SS -7.3% -10.8 3.5 --8.9% 1.6% NA 0.01* -0.08*
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 05/20/2011 12/25/2000 TLH SS 1.0% 9.7% -8.6% 4.9% -3.8% NA -0.15 -0.18
Adams 04/29/2011 06/18/1999 Captool 3.72% NA NA 3.05% 0.67% 0.72 NA NA
Euclid 05/20/2011 06/30/1999 TLH SS 1.9% 9.6% -7.7% 5.0% -3.1% 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 05/20/2011 03/13/2008 TLH SS 6.0% 14.8% -8.8% 10.6% -4.6% NA -0.19 -0.19

While I attempt to keep the eleven portfolios current, several do not have all May dividends posted so if anything, those few portfolios would be performing slightly better than the values shown in the data table.  Keep in mind the Franklin and Kenilworth portfolios are quite young and the IRR values will vary widely from week to week.

The performance results are a testament to the value of index investing, diversification, minimum of trading, and the style of asset allocation.  By style, I am referring to skewing portfolios toward the value and smaller-cap asset classes.

There is a lesson to be learned and that is, it is important to keep the asset classes in balance as much as possible. Check the seventh column or the one that measures the difference between the IRR of a portfolio and the ITA Index.  Many values in that column are negative.  If a better job of keeping the asset classes in balance occurred, the portfolio would have performed at a higher level.  It may be time to lower the threshold level from 25% to 20% in the larger portfolios.

Overall, the performance numbers are very good to excellent.

Platinum membership is available for $5.00 per month.  Learn how to construct and manage a portfolio similar to one of the above examples.

 

Seeking Alpha Articles

Over the last few weeks I've been writing a few articles for  Seeking Alpha and they have pulled a few blog posts off this site.  In case you missed any of these articles, here are the links.

  1. Emerging Market Countries: Properly Priced Probabilities

  2. Portfolio Risk: Is It Worth Taking a Chance?

  3. Stress Testing Retirement Portfolio: Will It Last?

  4. A 10 ETF Starter Portfolio

  5. Alternative to Holy Grail Portfolio: Forming Another Combination

  6. Holy Grail Portfolio: ETFs and Stocks That Form a Winning Combination

  7. Building a 5-ETF Portfolio: 3 Basics, 1 Treasury, 1 REIT

  8. Using 'Mosaic' Methods as a Reasonable Approach to Portfolio Construction

  9. Improving on the No-Brainer Portfolio: Add More Asset Classes

 

Send these links on to your friends if you think they may find this investment material of interest.  At least they should know about the Seeking Alpha site as it contains a lot of useful information.

Buffett Stocks

Are you ever interested in what a "Buffett Screen" might turn up in the way of stocks?  Look no further than the two screen shots below.

Become a Platinum member to see the following information.  Membership is only $5.00 per month.

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