Portfolio Exposures & Convictions
Figure 13 is composed of a focused list of indexes and assets classes and corresponding ETFs. Returns are through Oct. 31, 2009. The AI 75/50 portfolio weightings are labeled in the third column. Red highlights are for sectors that were shorted through 2x inverse ETFs (also red in Figure 14). In next month’s issue, we will add the Chinese yuan and real estate stocks, which were added in late October and early November 2009.
Our long equity ETFs are either overweight (OW) or neutral weight (NW) relative to the Dow Jones Global Index. The bond allocation is managed opportunistically and to enforce desired risk exposure without reference to a bond index.