Smug Portfolio : January Allocations

The hedge fund model which makes use of the assets and methodology that is the subject of this blog runs as two versions: the active, hedge fund version, and the passive Assets Under Management version. The hedge fund version is for accredited investors only, and uses active management based off a fairly complex trading model I created over the last 2 years. The active model attempts to capture maximum upside while limited volatility and risk. The fees are higher in the active model (but not much), and the historical results (which don't guarantee future performance) is more stable.

The "passive" management model used for individual investor accounts allows non-accreds (less than $1M net worth) - basically, me and everyone I know - to invest in a balanced green portfolio. While it's more volatile than active management, it should act as a way for normal people (aka, everyone) to invest green, get some measure of active management at a minimum of cost, and feel smug. In an effort to be open source about green investing, I will list the passive management positions on a quarterly or biannual basis. See below, with allocations. Note that the allocations listed below are for educational purposes - they are not recommended for everyone, and are based on dated model generated information.

Passive Positions as of January 1, 2008

CRATX CRA Qualified Investment Retail (CRAIX) 11.64%
DBA DB Agricuture ETF 8.79%
DSBFX Domini Social Bond Fund 12.10%
EWM iShares MSCI Malaysia Index ETF 7.61%
FXC CurrencyShares Canadian Dollar Trust ETF 9.29%
FXS CurrencyShares Swedish Krona Trust ETF 9.78%
PAXHX Pax World High Yield A 16.77%
QCLN First Trust NASDAQ Clean Edge ETF 7.49%
SH ProShares Short S&P 500 ETF 7.60%
UDN PowerShares DB USD Index Bearish ETF 8.93%

These allocations have changed, but notice the nice mix of community investments (CRATX), commodities (Agriculture, Currencies), short positions (SH, UDN), and green/SRI. This is based on the Smug Passive model dated 6/23/08 3:25PM.

For more detailed look at two of the funds listed above, see Smug posts here and here. For an explanation about how currency and indexes (Malaysia, Sweden, Canada, etc) play a part in the model, read the post about it here.