Portfolio Review of the Kepler: 23 September 2011

The Kepler Portfolio was launched near the end of the last major bear market and is therefore a relatively new portfolio.  Even so, it is fully funded with small contributions added each month.  Platinum members have access to the spreadsheet upon request.  As usual, we begin with a look at the Dashboard, the worksheet that is found inside the TLH Spreadsheet.

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Checking in on the Bohr Portfolio

In the News & Update footer, I mentioned at the beginning of the week I would be checking in on the Bohr, even though a review of this portfolio took place a week or so ago.  In this review I want to take a look at the "Delta Factor" following a QPP analysis to see if any under target asset classes are in the "Buy" zone.  But first, examine the Dashboard worksheet that is contained within the TLH Spreadsheet.

Of all the asset classes requiring attention, Large-Cap Value (LCV) and Developed International Equities Markets are the two to focus on.  LCV would be in balance if I classified the IDV ETF as a Mid-Cap Value holding.  IDV vacillates between the two asset classes.  So we have either LCV or MCV over target.  This portfolio rarely receives new cash, but if it does, we will build up the international equities asset class.  That is where we will be pushing our September dividends.  Overall, the portfolio is in good shape and as of 9/22/2011 was leading the VTSMX benchmark by 5.7% points annually.

In the following screen shot we have a Quantext Portfolio Planner (QPP) analysis of the Bohr.  The projected return at 8.7% is acceptable, but the projected standard deviation (risk, volatility, or uncertainty) is too high and this leads to a Return/Uncertainty ratio of 0.51.  We want this to be 0.60 or higher.  What can be changed to push the R/U ratio higher?

Platinum membership is available for a mere $5.00 per month.  Help support developing businesses in developing countries.

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