Author Topic: IVY Portfolio  (Read 2566 times)

2lazy2retire

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IVY Portfolio
« on: September 26, 2014, 12:43:14 PM »
Posted this over on JL Collins for his thoughts but was hoping someone on here might give their 2 cents worth also

He mentions MMM in his pieces and is an early retiree so would be in our corner so to speak.
He is a big fan of the IVY league portfolio which is a little bit more hands on than B&H especially the timing version, but the returns are impressive and more importantly the maxDD over the years reported was an eye opening -4.17%.

http://investingforaliving.wordpress.com/2014/05/10/ivy-portfolio-summary1973-to-2013-returns-risk/

As a result this model supports some impressive SWRs

http://investingforaliving.wordpress.com/2013/07/21/ivy-portfolio-summary-returns-risk-swrs/

Im hoping someone will throw a big BUT into the mix so I can stick with the lazy friendly 80/20 B&H and forget I ever seen this.

hodedofome

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Re: IVY Portfolio
« Reply #1 on: September 26, 2014, 01:07:27 PM »
It sounds like you don't want to change from your current allocation, so why waste time talking about it?

FYI the Ivy portfolio is not about trying to beat the market but to have a lower volatility portfolio with lower drawdowns. I think for the right person it's a good thing. During a big bull market, there's no way it'll outperform. But it should hold up really well in bear markets.

2lazy2retire

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Re: IVY Portfolio
« Reply #2 on: September 26, 2014, 01:22:42 PM »
"It sounds like you don't want to change from your current allocation, so why waste time talking about it?"

I could be persuaded

hodedofome

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Re: IVY Portfolio
« Reply #3 on: September 26, 2014, 10:08:38 PM »
Read Mebane Faber's and Gary Antonnacci's white papers and come up with your own conclusions. Then if you have questions post them here. Trying to convince you is the wrong angle IMO. You need to have your own conviction rather than someone else's.

The problem arises when this strategy, just like any other, goes through a time of suck. If you don't have your own conviction then you'll give up on it, even though the performance was consistent with the past. That's why strategies like momentum and value investing work over the long run, they go through enough sucky periods that everyone abandons them. It keeps the strat from becoming overcrowded and unprofitable.

Tom Basso was featured in The New Market Wizards book and what he would do is lock himself in a room and go through a backtest line by line, trade by trade. He would look at it and say to himself 'did the strategy perform like I would have expected it to? Could I see myself taking this trade in real life if my system told me to do it?' He wanted to know and understand his systems at this level of detail so he would have the conviction and confidence to trade it in real time.

I trade a system very similar to the Ivy momentum system but I've spend thousands of hours researching and back testing it so I have confidence in what I'm doing. I would suggest you engross yourself in it before ever seriously considering trading it in a live environment.