Am travelling at the moment so the weekend note came out at an unusual time of day this week. Linked below in case you missed it. No podcast this week.
Trend - back in black!
I am pleased with the way the 🐿️’s BUSHY™ beta portfolio is faring this year. The recent rally in US Treasuries to which the portfolio has limited direct exposure outside of T-Bills has not ended up costing us much of a relative performance issue.
Below sets out BUSHY™’s YTD performance and drawdown profile versus our benchmark (VTTHX - Vanguard’s 2035 Target Date fund) as well 3 other multi-asset ETFs that we track - Evoke’s RPAR 0.00%↑ (risk parity ETF), Meb Faber’s TRTY 0.00%↑ (Cambria Trinity ETF) and Bob Elliott’s HFND 0.00%↑ (Unlimited Multi-Strategy). I also keep an eye on Bridgewater’s ALLW 0.00%↑ (All Weather) and Warren Pies’ RAA 0.00%↑ (real asset portfolio) but these 2 started after January 1st 2025.
BUSHY™ has benefitted from being overweight most of the brightest green sectors, factors and geographies below.
This approach has seen BUSHY™ run a significant underweight in US equities versus benchmark for most of the year. I updated the latest asset allocation pie chart this morning. US broad equity exposure is below 3% (although there are some US mining and energy names in the Equity Themes sleeve).
BUSHY™ Review
BUSHY™ added 131bps on the week. The heavy lifting came from a particularly pleasing source…
