The Platinum Portfolio

The Platinum Portfolio is our most comprehensive strategy. This sophisticated strategy achieves the returns of our aggressive portfolio with the small drawdowns of the more conservative strategies (conservative or retirement portfolios) since 2006.

 

Main features of the Platinum Portfolio:


  • It relies on much more ETFs and sub-universes than our stardard portfolios, allowing for further granularity and diversification. VIEW ETF UNIVERSE.
  • It includes a “safe haven” sub-universe used to hedge other positions and further decrease the volatily and drawdown of the aggressive portfolio while targeting the same returns. This sub-universe includes currency, bond and inverse ETFs that typically experience negative correlations to equity markets in periods of stress or higher volatility.
  • It relies on a more elaborate system of weighting of the different positions.
  • It can be rebalanced more frequently depending on a range of factors. Make sure you are subscribed to our newsletter to be alerted of all the trades in the portfolio.

Performance of the Platinum Portfolio


With these features, the platinum portfolio has delivered since 2006 returns similar to the aggressive portfolio but with much lower volatility and maximum drawdowns even smaller than the drawdowns of the conservative portfolio. The table below compares the performance of the 3 models:

Data for 2006-2012

Model Conservative Aggressive Platinum
CAGR +12.3% +24.3% +24.2%
Volatility 8.4% 16.6% 12.0%
Drawdown -5.5% -11.0% -7.5%
Positive months 66.7% 67.9% 67.9%

Technical notes: CAGR is the Compounded Annual Gross Return. Volatilty is the volatility of monthly returns. Max Drawdown is the maximum drawdown based on monthly returns.


The allocation process is based on 7 sub-strategies. The chart below draws the equity curve of the Platinum Portfolio (red line) and of its 7 components. (For the sake of comparison, the aggressive portfolio has 3 components).

 

If you want to see more data on the risks involved by our different portfolio, we have a more detailed version of the above table including many risk metrics. It is striking to see how the Platinum Portfolio performs. Learn more.

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To check the latest composition of the Platinum Portfolio, click here


You can also see a simple example on how these principles can work in practice by checking our basic Sector Rotation Strategy: we will fully detail the set of rules of a simple strategy that switches at the beginning of every month to the two best performing sectors in the U.S. stock market.


Additional Statistics


  • Yearly Performance Data

    Year Platinum Portfolio
    2006 23.9%
    2007 39.9%
    2008 36.4%
    2009 46.2%
    2010 22.4%
    2011 7.0%
    2012 0.6%

  • Monthly Performance Data

    Month Return
    Jan-06 4.96%
    Feb-06 -0.94%
    Mar-06 0.81%
    Apr-06 2.68%
    May-06 -3.51%
    Jun-06 -0.84%
    Jul-06 2.49%
    Aug-06 1.59%
    Sep-06 1.20%
    Oct-06 4.23%
    Nov-06 4.19%
    Dec-06 5.18%
    Jan-07 -1.19%
    Feb-07 -0.80%
    Mar-07 0.85%
    Apr-07 3.94%
    May-07 5.08%
    Jun-07 0.26%
    Jul-07 2.44%
    Aug-07 1.94%
    Sep-07 10.18%
    Oct-07 13.05%
    Nov-07 -2.10%
    Dec-07 1.47%
    Jan-08 5.53%
    Feb-08 4.92%
    Mar-08 -4.10%
    Apr-08 0.81%
    May-08 4.99%
    Jun-08 1.34%
    Jul-08 -1.54%
    Aug-08 1.35%
    Sep-08 1.47%
    Oct-08 6.25%
    Nov-08 4.21%
    Dec-08 6.83%
    Jan-09 -2.54%
    Feb-09 2.89%
    Mar-09 -1.13%
    Apr-09 11,00%
    May-09 11.70%
    Jun-09 -2.64%
    Jul-09 5.54%
    Aug-09 3.65%
    Sep-09 6.44%
    Oct-09 -1.15%
    Nov-09 6.16%
    Dec-09 -0.05%
    Jan-10 -2.71%
    Feb-10 2.03%
    Mar-10 5.15%
    Apr-10 2.94%
    May-10 -2.62%
    Jun-10 3.19%
    Jul-10 1.35%
    Aug-10 1.88%
    Sep-10 2.81%
    Oct-10 4.36%
    Nov-10 -1.57%
    Dec-10 3.97%
    Jan-11 1.73%
    Feb-11 2.85%
    Mar-11 0.76%
    Apr-11 4.65%
    May-11 -2.22%
    Jun-11 -1.32%
    Jul-11 1.17%
    Aug-11 5.09%
    Sep-11 -3.33%
    Oct-11 -0.76%