Portfolio Management Suggestions

Before outlining portfolio management suggestions, I'm assuming ITA readers have a savings and investment plan in effect.  For saving suggestions, search for "The Golden Rule of Investing" and related topics.  There are a number of blog entries related to preparing for retirement, and the earlier one begins retirement planning the better.

After establishing a savings plan, write down your investment plan.  One place to begin is with the Dashboard worksheet contained inside the TLH Spreadsheet.  Develop a Strategic Asset Allocation (SAA) plan.  Laying out a plan does not mean it is chiseled in granite.  The idea is to begin with a plan and then continue to learn if changes are necessary. 

"You Cannot Manage What You Do Not Measure"

What are my portfolio management suggestions?

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Portfolio Performance: 25 November 2011

The weekly performance data is presented in the table below.  While it was another down week on an absolute scale, most of the portfolios performed rather well.  Only the Einstein lost ground with respect to the VTSMX benchmark.  Those holding even were the Schrodinger, Kepler, and Bohr.  Portfolios that picked up at least a tenth of a percentage point on the VTSMX were the following: Curie, Newton, Kenilworth, Franklin, Maxwell, Euclid, and the Madison.  The latter three are those where we are in the process of activating the ITA Risk Reduction model.  The ITARR is not yet in full effect.

Click on the title to expand the data table.

Portfolio Performance - 11/25/2011

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 10/31/2011 07/21/1999 Captool 2.35% NA NA 2.0% 0.35% 0.05 NA NA
Curie 11/25/2011 12/26/2007 TLH SS 2.0% -3.4% 5.4% -1.9% 3.9% NA 6.8 -5.1
Mosaic2 10/31/2011 07/19/1999 Captool 4.62% NA NA 1.84% 2.78% 0.16 NA NA
Newton 11/25/2011 06/02/2008 TLH SS 5.4% 0.9% 4.5% 2.6% 2.8% NA 2.1 -0.4
Passive Port. 10/31/2011 12/01/2000 Captool 4.5% NA NA 2.22% 2.28% 0.68 NA NA
Schrodinger 11/25/2011 12/01/2000 TLH SS 3.5% 1.0% 2.6% 1.8% 1.8% NA 14.9 -11.3
Jane 10/31/2011 02/14/1997 Captool 8.46% NA NA 5.24% 3.22% 0.54 NA NA
Einstein 11/25//2011 06/30/2008 TLH SS 6.7% 3.4% 3.3% 5.0% 1.78% NA 0.7 0.3
Gauss 10/31/2011 02/19/1997 Captool 8.61% NA NA 5.2% 3.4% 0.23 NA NA
Kepler 11/25/2011 11/01/2008 TLH SS 102.1% 9.5% 0.6% 10.9% -0.8% NA -0.29 -0.29
Scrappy 10/31/2011 08/14/2008 Captool 8.96% NA NA -0.35% 9.31% NA NA NA
Bohr 11/25/2011 08/14/2008 TLH SS 5.9% 5.2% 0.7% 0.8% 5.1% NA 2.8 0.6
Kenilworth 11/25/2011 08/18/2010 TLH SS -7.1% -8.3% 1.2% -5.2% -1.9% NA -0.01 -0.09
Franklin 11/25/2011 05/6/2011 TLH SS -15.4% -22.2% 6.8% -23.0% 7.6% NA 0.05* -0.13*
Projects 10/31/2011 12/01/2000 Captool 5.04% NA NA 2.22% 2.82% 1.26 NA NA
Washington 10/31/2011 06/18/1999 Captool 2.89% NA NA 2.03% 0.86% 0.28 NA NA
Maxwell 11/25/2011 12/25/2000 TLH SS -0.7% -2.0% 1.3% 2.4% -3.1% NA -0.10 -0.18
Adams 10/31/2011 06/18/1999 Captool 3.5% NA NA 2.03% 1.47% 0.73 NA NA
Euclid 11/25/2011 06/30/1999 TLH SS 0.5% -15.4% 15.9% 2.3% -1.8% NA -0.08 -0.20
Jefferson 10/31/2011 06/13/2006 Captool 4.79% NA NA -0.36% 5.15% NA NA NA
Madison 11/25/2011 03/13/2008 TLH SS -1.8% -8.4% 6.6% 2.6% -4.4% NA -0.18 -0.27

SR = Sortino Ratio

RR = Retirement Ratio

IR = Information Ratio

Differences are rounded to the nearest 0.1%