Small Cap Value heads Rejoice !!!

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Ramjet
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Re: Small Cap Value heads Rejoice !!!

Post by Ramjet »

Thought this would be a good place to post this question. I remember reading somewhere that the Russell 2000 fixed it front running issues.

Can anyone confirm this?

When did this happen?

What did they do?
VT & HFEA
FiveFactor
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Re: Small Cap Value heads Rejoice !!!

Post by FiveFactor »

nisiprius wrote: Sat Oct 09, 2021 7:15 am
FiveFactor wrote: Sat Oct 09, 2021 5:20 am...bogleheads now see “good Larry” - from back when opinions were more aligned - and “bad Larry” - who is now derided as a hedge fund shill.
I can't remember Larry Swedroe ever having a good thing to say about hedge funds. Not then, not now.

Not in 2009, in The Only Guide to Alternative Investments You'll Ever Need: The Good, the Flawed, the Bad, and the Ugly:

Image

Not in 2021: Be Thankful You Don't Have Access To Hedge Funds
  • The exclusive nature of hedge funds, available only to institutional and wealthy (accredited) investors, makes many small individual investors wish they had access to this exotic asset.
  • Over the last 10, 15, and 20 years, an exposure to global stocks (bonds) of 31.0%(69%), 24.5 (75.5.%), and 23.7% (76.3%), would have matched the volatility of hedge funds while producing higher returns.
  • Gold has provided more downside protection than have hedge funds.
  • Hedge fund performance has deteriorated over the past 20 years as markets became more efficient and their trades become more crowded.
I don't remember any Boglehead ever saying that Larry Swedroe was shilling for hedge funds, either.
90% of his research and papers are on alternative strategies. You are maybe 5-7 years behind on his research if this is your take away
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Re: Small Cap Value heads Rejoice !!!

Post by FiveFactor »

To be clear. Larry’s only Equity holdings are SCV. He owns no bonds. He has significant exposure to alternatives. That is where the evidence led.

If you want to quote where the evidence was pointed 12 years ago, feel free. Such is the world of dogma
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Nathan Drake
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Re: Small Cap Value heads Rejoice !!!

Post by Nathan Drake »

I don't think larry said he owns no bonds. Only that he has re-allocated some of his bonds over to private debt to capture higher yield and illiquidity premium.
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Re: Small Cap Value heads Rejoice !!!

Post by FiveFactor »

Larry said he owns no bonds. Your disbelief does not change facts.
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Re: Small Cap Value heads Rejoice !!!

Post by Nathan Drake »

FiveFactor wrote: Sat Oct 09, 2021 1:16 pm Larry said he owns no bonds. Your disbelief does not change facts.
See a recent Larry post I added earlier:
My pleasure
Here is my thought if not aware. Bonds like Treasuries have TWO risks despite most investors thinking they have one–rising rates. But they have two, falling rates which creates reinvestment risk. So I want to balance duration risk with reinvestment risk. So I think good place to be, which matches what historically has been about the sweet spot is say 4-5 years. I will extend a bit (year or 2) when curve very steep and shorten a bit (maybe to 3 years, but not less) if curve flat, which is based on the evidence.
Now in recent years with negative real rates and IMO significant inflation risk I have moved away from all bonds being “safe” (basically no credit risk) to taking credit risk in private debt (big illiquidity premium which is not a risk for me) in return for large spread (current yields about 7-8%+) and eliminating basically interest rate risk. So to me that is a good trade off—equity like returns expected but only about 1/4-1/5 volatility of equities and even less downside than that in tail risks. But still hold significant safe bonds to have negatively correlating assets to rebalance with if the left tail economic risks do show up.
Hope that helps
Larry
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Re: Small Cap Value heads Rejoice !!!

Post by FiveFactor »

So Larry is talking about the purpose of bonds. Where does he talk about his portfolio? It’s not in that except, which is an answer to a contextually absent question.

Btw: I know Larry. He doesn’t own bonds.

https://twitter.com/larryswedroe/status ... 63104?s=21

And FYI this is the evidence that drove that decision
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Taylor Larimore
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Larry Swedroe Portfolio

Post by Taylor Larimore »

Bogleheads:

According to Optimized Portfolio, this is the most recent "Larry Swedroe Portfolio" (70% Intermediate-Term bonds).

https://www.optimizedportfolio.com/larr ... portfolio/

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Lehman Bond Index (total bond market), in substance, is an appropriate choice for investors with an intermediate-term time horizon and seeking top quality."
"Simplicity is the master key to financial success." -- Jack Bogle
FiveFactor
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Re: Larry Swedroe Portfolio

Post by FiveFactor »

Taylor Larimore wrote: Sat Oct 09, 2021 1:59 pm Bogleheads:

According to Optimized Portfolio, this is the most recent "Larry Swedroe Portfolio" (70% Intermediate-Term bonds).

https://www.optimizedportfolio.com/larr ... portfolio/

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Lehman Bond Index (total bond market), in substance, is an appropriate choice for investors with an intermediate-term time horizon and seeking top quality."
We aren’t talking about Larry’s template. We are talking about what he actually does. He does not personally follow the template you outlined. That’s the “dumbed down” version for public consumption.
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Re: Larry Swedroe Portfolio

Post by nisiprius »

FiveFactor wrote: Sat Oct 09, 2021 2:23 pm We aren’t talking about Larry’s template. We are talking about what he actually does. He does not personally follow the template you outlined. That’s the “dumbed down” version for public consumption.
Consider that statement in relation to this one:

Larry Swedroe, 2019 Your Complete Guide to a Successful & Secure Retirement
2. Eat Their Own Cooking

You should require that the firm’s advisors invest their personal assets (including the firm’s profit-sharing and/or retirement plan) based on the same set of investment principles and in the same or comparable securities that they recommend to their clients. While you should expect to see different asset allocations than is being recommended to you (as each investor has their own unique circumstances), the investment vehicles should be the same.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
FiveFactor
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Re: Larry Swedroe Portfolio

Post by FiveFactor »

nisiprius wrote: Sat Oct 09, 2021 2:37 pm
FiveFactor wrote: Sat Oct 09, 2021 2:23 pm We aren’t talking about Larry’s template. We are talking about what he actually does. He does not personally follow the template you outlined. That’s the “dumbed down” version for public consumption.
Consider that statement in relation to this one:

Larry Swedroe, 2019 Your Complete Guide to a Successful & Secure Retirement
2. Eat Their Own Cooking

You should require that the firm’s advisors invest their personal assets (including the firm’s profit-sharing and/or retirement plan) based on the same set of investment principles and in the same or comparable securities that they recommend to their clients. While you should expect to see different asset allocations than is being recommended to you (as each investor has their own unique circumstances), the investment vehicles should be the same.
Which says, “my personal portfolio will look different than what I am recommending.”

We agree. Thanks.
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Re: Larry Swedroe Portfolio

Post by nisiprius »

FiveFactor wrote: Sat Oct 09, 2021 2:45 pm
nisiprius wrote: Sat Oct 09, 2021 2:37 pm
FiveFactor wrote: Sat Oct 09, 2021 2:23 pm We aren’t talking about Larry’s template. We are talking about what he actually does. He does not personally follow the template you outlined. That’s the “dumbed down” version for public consumption.
Consider that statement in relation to this one:

Larry Swedroe, 2019 Your Complete Guide to a Successful & Secure Retirement
2. Eat Their Own Cooking

You should require that the firm’s advisors invest their personal assets (including the firm’s profit-sharing and/or retirement plan) based on the same set of investment principles and in the same or comparable securities that they recommend to their clients. While you should expect to see different asset allocations than is being recommended to you (as each investor has their own unique circumstances), the investment vehicles should be the same.
Which says, “my personal portfolio will look different than what I am recommending.”

We agree. Thanks.
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Random Walker
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Re: Larry Swedroe Portfolio

Post by Random Walker »

nisiprius wrote: Sat Oct 09, 2021 2:37 pm
FiveFactor wrote: Sat Oct 09, 2021 2:23 pm We aren’t talking about Larry’s template. We are talking about what he actually does. He does not personally follow the template you outlined. That’s the “dumbed down” version for public consumption.
Consider that statement in relation to this one:

Larry Swedroe, 2019 Your Complete Guide to a Successful & Secure Retirement
2. Eat Their Own Cooking

You should require that the firm’s advisors invest their personal assets (including the firm’s profit-sharing and/or retirement plan) based on the same set of investment principles and in the same or comparable securities that they recommend to their clients. While you should expect to see different asset allocations than is being recommended to you (as each investor has their own unique circumstances), the investment vehicles should be the same.
I’m a client of Larry’s firm. I would say they definitely eat their own cooking. Firstly it’s important to appreciate that it is a huge firm and there has got to be some reasonable amount of variation between what different principals, advisors, employees do. Secondly, investors will have some input into their portfolios as well. So some differences expected. That being said, I’ve seen my advisor add alternatives to my portfolio including LENDX and CCLFX. And most recently as individual muni bonds have matured some of my bond holdings have gone into DFEQX:DFA short term extended quality portfolio.

Dave
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Re: Larry Swedroe Portfolio

Post by patrick013 »

Taylor Larimore wrote: Sat Oct 09, 2021 1:59 pm Bogleheads:

According to Optimized Portfolio, this is the most recent "Larry Swedroe Portfolio" (70% Intermediate-Term bonds).

https://www.optimizedportfolio.com/larr ... portfolio/

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Lehman Bond Index (total bond market), in substance, is an appropriate choice for investors with an intermediate-term time horizon and seeking top quality."
+1

He was alwaysgood with bonds.
age in bonds, buy-and-hold, 10 year business cycle
FiveFactor
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Re: Larry Swedroe Portfolio

Post by FiveFactor »

patrick013 wrote: Sat Oct 09, 2021 6:33 pm
Taylor Larimore wrote: Sat Oct 09, 2021 1:59 pm Bogleheads:

According to Optimized Portfolio, this is the most recent "Larry Swedroe Portfolio" (70% Intermediate-Term bonds).

https://www.optimizedportfolio.com/larr ... portfolio/

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Lehman Bond Index (total bond market), in substance, is an appropriate choice for investors with an intermediate-term time horizon and seeking top quality."
+1

He was alwaysgood with bonds.
Can someone point to me where I said anything other than what Larry is doing for himself? Lots of straw men getting beat to hell out here
csmath
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Re: Small Cap Value heads Rejoice !!!

Post by csmath »

How did this thread go from being about Small Cap Value to Bonds and "Larry Swedroe Portfolio"? This should be forked into its' own thread right?
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Re: Small Cap Value heads Rejoice !!!

Post by Random Walker »

csmath wrote: Sun Oct 10, 2021 11:22 am How did this thread go from being about Small Cap Value to Bonds and "Larry Swedroe Portfolio"? This should be forked into its' own thread right?
Probably should be own thread. But the link is that SV has greater expected return than TSM, so as a proponent of “hyperdiversification”, Larry recommends increasing SV tilt together with decreasing overall equity allocation and increasing safe bond allocation.

Dave
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Re: Small Cap Value heads Rejoice !!!

Post by csmath »

Random Walker wrote: Sun Oct 10, 2021 11:30 am
csmath wrote: Sun Oct 10, 2021 11:22 am How did this thread go from being about Small Cap Value to Bonds and "Larry Swedroe Portfolio"? This should be forked into its' own thread right?
Probably should be own thread. But the link is that SV has greater expected return than TSM, so as a proponent of “hyperdiversification”, Larry recommends increasing SV tilt together with decreasing overall equity allocation and increasing safe bond allocation.

Dave
:thumbsup
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Re: Small Cap Value heads Rejoice !!!

Post by absolute zero »

csmath wrote: Sun Oct 10, 2021 11:22 am How did this thread go from being about Small Cap Value to Bonds and "Larry Swedroe Portfolio"? This should be forked into its' own thread right?
Yeah I don’t know why anyone cares what Larry has in his portfolio.
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Re: Larry Swedroe Portfolio

Post by nisiprius »

FiveFactor wrote: Sun Oct 10, 2021 11:12 am...Can someone point to me where I said anything other than what Larry is doing for himself? Lots of straw men getting beat to hell out here...
I'd like to let this go. You misspoke, or you were careless. But for the record, you did post
FiveFactor wrote: Sat Sep 25, 2021 5:47 am Larry Swederoe recommends 100% SCV for equities
Paul Merriman 100% SCV
Ben Felix (how is this dude considered a leader? He just reposts others works, no unique insights…) anyway, he also blessed 100% SCV

I’m sure there are others as well
so please don't say it was a straw man. Just say you misspoke. If you like, you can edit the posting to read "Larry Swedroe himself uses 100% SCV" instead of "recommends."

I don't think Larry Swedroe has ever recommended that anybody else use the "Larry portfolio."
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Re: Larry Swedroe Portfolio

Post by FiveFactor »

nisiprius wrote: Sun Oct 10, 2021 11:50 am
FiveFactor wrote: Sun Oct 10, 2021 11:12 am...Can someone point to me where I said anything other than what Larry is doing for himself? Lots of straw men getting beat to hell out here...
I'd like to let this go. You misspoke, or you were careless. But for the record, you did post
FiveFactor wrote: Sat Sep 25, 2021 5:47 am Larry Swederoe recommends 100% SCV for equities
Paul Merriman 100% SCV
Ben Felix (how is this dude considered a leader? He just reposts others works, no unique insights…) anyway, he also blessed 100% SCV

I’m sure there are others as well
so please don't say it was a straw man. Just say you misspoke. If you like, you can edit the posting to read "Larry Swedroe himself uses 100% SCV" instead of "recommends."

I don't think Larry Swedroe has ever recommended that anybody else use the "Larry portfolio."

Larry does recommend 100% SCV for Equities. That’s even in his books! That and it’s his recommended portfolio.

The need to try to make this not true is why y’all have been so disquieted by this. Better to ask yourself why you feel the need to stand up strawmen. Why is it so uncomfortable that Larry doesn’t follow your dogma?

Anything else?
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Re: Small Cap Value heads Rejoice !!!

Post by Forester »

I couldn't find on the other forum, where Mr Swedroe outlines his personal portfolio / disdain for bonds, could someone link to the thread.
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Re: Larry Swedroe Portfolio

Post by muffins14 »

FiveFactor wrote: Sun Oct 10, 2021 11:12 am
patrick013 wrote: Sat Oct 09, 2021 6:33 pm
Taylor Larimore wrote: Sat Oct 09, 2021 1:59 pm Bogleheads:

According to Optimized Portfolio, this is the most recent "Larry Swedroe Portfolio" (70% Intermediate-Term bonds).

https://www.optimizedportfolio.com/larr ... portfolio/

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "The Lehman Bond Index (total bond market), in substance, is an appropriate choice for investors with an intermediate-term time horizon and seeking top quality."
+1

He was alwaysgood with bonds.
Can someone point to me where I said anything other than what Larry is doing for himself? Lots of straw men getting beat to hell out here
You pretty obviously said he recommends 100% SCV. Not sure why you’re being so combative when you clearly wrote that sentence. You also said the same thing about bill Bernstein
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Re: Larry Swedroe Portfolio

Post by GoneOnTilt »

nisiprius wrote: Sun Oct 10, 2021 11:50 am
FiveFactor wrote: Sun Oct 10, 2021 11:12 am...Can someone point to me where I said anything other than what Larry is doing for himself? Lots of straw men getting beat to hell out here...
I'd like to let this go. You misspoke, or you were careless. But for the record, you did post
FiveFactor wrote: Sat Sep 25, 2021 5:47 am Larry Swederoe recommends 100% SCV for equities
Paul Merriman 100% SCV
Ben Felix (how is this dude considered a leader? He just reposts others works, no unique insights…) anyway, he also blessed 100% SCV

I’m sure there are others as well
so please don't say it was a straw man. Just say you misspoke. If you like, you can edit the posting to read "Larry Swedroe himself uses 100% SCV" instead of "recommends."

I don't think Larry Swedroe has ever recommended that anybody else use the "Larry portfolio."
Larry Swedroe has put forth using 30% small cap value and 70% bonds. Not sure what the issue is. If you're arguing that he specifically never used the word "recommend" - well, I think you're straining out a gnat and swallowing a camel.
Last edited by GoneOnTilt on Sun Oct 10, 2021 2:12 pm, edited 1 time in total.
csmath
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Re: Larry Swedroe Portfolio

Post by csmath »

In sequential order...
=====================
FiveFactor wrote: Sat Sep 25, 2021 5:47 am Larry Swederoe recommends 100% SCV for equities
FiveFactor wrote: Sun Oct 10, 2021 11:12 am...Can someone point to me where I said anything other than what Larry is doing for himself? Lots of straw men getting beat to hell out here...
FiveFactor wrote: Sun Oct 10, 2021 12:41 pm Larry does recommend 100% SCV for Equities. That’s even in his books! That and it’s his recommended portfolio.
==========================================

I'm pretty sure you two are talking about different things. Let's establish that "The Larry Swedroe Portfolio" and "Larry Swedroe's Portfolio" are ambiguous. The two interpretations are:
  1. The portfolio that Larry uses himself (I don't have a link)
  2. The portfolio that has taken on a life of its own and referred to as "The Larry Swedroe Portfolio" https://www.optimizedportfolio.com/larr ... portfolio/
The first one can be found in Larry's brokerages as it is what he is himself invested in. The second is found discussed by others as one of many model portfolios to use as a starting point in developing your own portfolio. It is a portfolio that is or was at one time recommended by him for "others".

==========================================
FiveFactor wrote: Sun Oct 10, 2021 12:41 pm Better to ask yourself why you feel the need to stand up strawmen. Why is it so uncomfortable that Larry doesn’t follow your dogma?
Trying to get to the bottom of two distinct questions about what someone else says or does has nothing to do with dogma. That makes no sense at all. I can understand accusing someone of dogma if the debate was about the validity of what someone recommends or is doing in their portfolio, but that isn't what is being discussed.

==========================================

Can we agree at this point that on the equity side:
  • Larry himself uses 100% SCV
  • Larry *has* recommended 100% SCV to others
Can we also agree that:
  • "The Larry Swedroe Portfolio" that either was or is still recommended by him has Bonds in a non-equity portion
  • Larry Swedroe may not currently have Bonds in his non-equity portion of his portfolio
==========================================

I guess the only question not clear to me is if Larry Swedroe, at this moment in time, still recommends the same portfolio that he apparently has in the past? If he were to look at "The Larry Swedroe Portfolio" at https://www.optimizedportfolio.com/larr ... portfolio/, would he still recommend the portfolio shown there for others as a starting point for their own portfolios?
Last edited by csmath on Sun Oct 10, 2021 3:39 pm, edited 2 times in total.
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Re: Small Cap Value heads Rejoice !!!

Post by nisiprius »

The subdiscussion where Larry Swedroe's name is being used seems to be foundering on three different questions.

1) What does Larry Swedroe recommend?
2) What is the composition of the portfolio named "the Larry Portfolio?"
3) What does Larry Swedroe currently invest in personally?

For #2, I think there is a definitive answer.

A portfolio named the "Larry Portfolio" is described on page 51 of Reducing the Risk of Black Swans: Using the Science of Investing to Capture Returns with Less Volatility, 2018 Edition, by Larry Swedroe and Kevin Grogan. They don't lay it out in tabular form, they don't call out designate specific real-world mutual funds or ETFs that could be used to implement it. I don't see any place where they say they "recommend" it, nor do they say that this is what Larry Swedroe currently invests in. But this seems like a definitive description of the Larry Portfolio:
On December 23, 2011, Ron Lieber, financial columnist for The New York Times, wrote an article titled “Taking a Chance on the Larry Portfolio”—and the “Larry Portfolio” (LP) was born. The LP is the “technical” term for a portfolio that basically limits its stock holdings to the highest returning equity asset classes available to individual investors in low-cost, passively managed investment vehicles, specifically U.S. small value stocks, developed markets small value stocks and emerging market value stocks.
The actual portfolio composition is stated on page 52, under the table. I am going to reformat it into a tabular form:
Portfolio B: 14 percent Fama/French US Small Value Index (ex utilities)
10.5 percent Dimensional International Small Cap Value Index
3.5 percent Fama/French Emerging Markets Value Index
72 percent five-year Treasury notes
Your Complete Guide to a Successful & Secure Retirement, by the same authors, was published in 2019. Chapter 7, "7: Investment Strategy Part II: Reducing the Risk of Black Swans," is very similar to the material in the 2018 book but it does not name or discuss the "Larry Portfolio" at all. Under the subheading "Building a More Efficient Portfolio," the culminating and final portfolio, Portfolio 5, on p. 88 is:

S&P 500 Index: 5%
Fama/French US Large Value Index (ex utilities): 5%
Fama/French US Small Cap Index: 5%
Fama/French US Small Value Index (ex utilities): 5%
MSCI EAFE Value Index: 10%
Dimensional International Small Cap Index: 10%
10% Five-Year Treasury Notes: 60%

This isn't 100% small-cap value, and in fact is in good accord with the model portfolios Larry Swedroe published in 1998 and 2004--particularly the US stock breakdown into large blend + large value + small blend + small value.

Both books recommend that the securities portfolio be supplemented by liquid alts, specifically vehicles that capture the alternative lending, reinsurance, variance, and alternative risk premiums--but without committing to any model portfolio or any target percentage commitment to them. These four categories line up well with funds Larry Swedroe has recommended in the forum and in articles: LENDX, SRRIX, the late AVRPR, and QSPRX.
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Re: Larry Swedroe Portfolio

Post by nisiprius »

csmath wrote: Sun Oct 10, 2021 2:11 pm Can we agree at this point that on the equity side:
  • Larry himself uses 100% SCV
I think so. That's the big principle behind "The Larry Portfolio."
  • Larry recommends 100% SCV to others
I'm not at all sure of that. I'm ready to be convinced, but I haven't seen a source yet. Did I miss one upthread?

Nathan Drake's quotation here was very helpful, but it was speaking to bonds... and I read it as being entirely about Larry Swedroe's own portfolio and not at all about a recommendation to others.
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Re: Larry Swedroe Portfolio

Post by csmath »

nisiprius wrote: Sun Oct 10, 2021 2:37 pm
csmath wrote: Sun Oct 10, 2021 2:11 pm Can we agree at this point that on the equity side:
  • Larry himself uses 100% SCV
I think so. That's the big principle behind "The Larry Portfolio."
  • Larry recommends 100% SCV to others
I'm not at all sure of that. I'm ready to be convinced, but I haven't seen a source yet. Did I miss one upthread?

Nathan Drake's quotation here was very helpful, but it was speaking to bonds... and I read it as being entirely about Larry Swedroe's own portfolio and not at all about a recommendation to others.
Referring to the blue portion above, I had intended to say "has" recommended 100% SCV to others for equity portion. That would have been consistent with my final question since I do not know what he recommends at the present time. I am going to take the liberty to edit the quoted post to read "has recommended"
csmath wrote: Sun Oct 10, 2021 2:11 pm I guess the only question not clear to me is if Larry Swedroe, at this moment in time, still recommends the same portfolio that he apparently has in the past? If he were to look at "The Larry Swedroe Portfolio" at https://www.optimizedportfolio.com/larr ... portfolio/, would he still recommend the portfolio shown there for others as a starting point for their own portfolios?
But now that you mention it, I guess we haven't produced a direct quote from him yet that he has ever recommended 100% SCV for others. This, from 2015, is the best evidence I've got at this point in time:
larryswedroe wrote: Wed Oct 21, 2015 11:33 am Few thoughts

First what you listed isn't the Larry Portfolio which is for equity portion 50% US SV, 37.5% ISV and 12.5% EMV/S

By doing that, holding only the riskiest equity asset classes with the highest expected return you can either get a higher expected return (and well over 1% difference in long term historically vs the market portfolio) OR you can use that higher expected return to lower equity allocation and then have a much less risky portfolio historically (cutting left tail risk dramatically more than right tail risk by the way).

With that said, to be successful with ANY strategy you have to understand the nature of the risks you take and have a strong belief system because it's highly likely that any strategy will go through fairly long periods of underperformance, during which discipline will be tested. So it's key to choose a strategy you can stick with because you understand the pros and cons and the nature of the risks. IN other words, it's far more important to choose strategy you WILL stick with than to pick a portfolio that has a more efficient history of delivering risk-adjusted returns

I hope that is helpful

larry
YRT70
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Re: Small Cap Value heads Rejoice !!!

Post by YRT70 »

Maybe this can clear some thing up:

Posted by Larry 3 days ago.
So while I still maintain some significant safe bonds (MYGAs, and muni portfolio running off) I have shifted my bond allocation to more alternatives like CCLFX and LENDX and CCEFX trading off a huge risk premium (7%+) for some economic cycle risk (small fraction of that of equities) but also gaining inflation hedge as these have no or almost no duration. To me that is a good trade off. Now these assets were not available until few years ago because there were no interval funds.
Link to the full post: https://community.rationalreminder.ca/t ... on/3713/78
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Re: Small Cap Value heads Rejoice !!!

Post by Whakamole »

YRT70 wrote: Mon Oct 11, 2021 4:18 am Maybe this can clear some thing up:

Posted by Larry 3 days ago.
So while I still maintain some significant safe bonds (MYGAs, and muni portfolio running off) I have shifted my bond allocation to more alternatives like CCLFX and LENDX and CCEFX trading off a huge risk premium (7%+) for some economic cycle risk (small fraction of that of equities) but also gaining inflation hedge as these have no or almost no duration. To me that is a good trade off. Now these assets were not available until few years ago because there were no interval funds.
Link to the full post: https://community.rationalreminder.ca/t ... on/3713/78
Unfortunately, there's no access to that site unless you've been invited. Also, CCEFX has been liquidated so he probably means another ticker.

These are only available via RIA's so unless you have a relationship with one, they're out of the picture.
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Re: Small Cap Value heads Rejoice !!!

Post by Wade Garrett »

Whakamole wrote: Mon Oct 11, 2021 9:43 amUnfortunately, there's no access to that site unless you've been invited.
??? I have access to it and I was never invited.
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Re: Small Cap Value heads Rejoice !!!

Post by nisiprius »

Wade Garrett wrote: Tue Oct 12, 2021 10:47 am
Whakamole wrote: Mon Oct 11, 2021 9:43 amUnfortunately, there's no access to that site unless you've been invited.
??? I have access to it and I was never invited.
Here's what I see when I try to follow links to the Rational Reminder Community.

Image

Perhaps you established an account before they instituted the "invitation-only" policy?
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
absolute zero
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Re: Small Cap Value heads Rejoice !!!

Post by absolute zero »

nisiprius wrote: Tue Oct 12, 2021 9:04 pm
Wade Garrett wrote: Tue Oct 12, 2021 10:47 am
Whakamole wrote: Mon Oct 11, 2021 9:43 amUnfortunately, there's no access to that site unless you've been invited.
??? I have access to it and I was never invited.
Here's what I see when I try to follow links to the Rational Reminder Community.

Image

Perhaps you established an account before they instituted the "invitation-only" policy?
That is strange. I wonder if they fear that the user base would otherwise grow too quickly, and that they don’t have the capacity to moderate an otherwise large number of forum members. Aka keep out the riff raff. I can’t think of any other reason why they would have a policy like this one.
FiveFactor
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Re: Small Cap Value heads Rejoice !!!

Post by FiveFactor »

YRT70 wrote: Mon Oct 11, 2021 4:18 am Maybe this can clear some thing up:

Posted by Larry 3 days ago.
So while I still maintain some significant safe bonds (MYGAs, and muni portfolio running off) I have shifted my bond allocation to more alternatives like CCLFX and LENDX and CCEFX trading off a huge risk premium (7%+) for some economic cycle risk (small fraction of that of equities) but also gaining inflation hedge as these have no or almost no duration. To me that is a good trade off. Now these assets were not available until few years ago because there were no interval funds.
Link to the full post: https://community.rationalreminder.ca/t ... on/3713/78
BTW I do concede it’s possible I miss heard Larry on the degree to which he is out of bonds
Small/Value/Profitability: | 30% AVUV | 30% AVDV | 30% AVES | Momentum: | 5% QMOM | 5% IMOM | Volatility: | 0.1% PUTW | Term: | 0.1% BND
YRT70
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Re: Small Cap Value heads Rejoice !!!

Post by YRT70 »

nisiprius wrote: Tue Oct 12, 2021 9:04 pm
Wade Garrett wrote: Tue Oct 12, 2021 10:47 am
Whakamole wrote: Mon Oct 11, 2021 9:43 amUnfortunately, there's no access to that site unless you've been invited.
??? I have access to it and I was never invited.
Here's what I see when I try to follow links to the Rational Reminder Community.

Image

Perhaps you established an account before they instituted the "invitation-only" policy?
What happens if you click the sign up button?
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Re: Small Cap Value heads Rejoice !!!

Post by LadyGeek »

I removed an off-topic post. As a reminder, see: General Etiquette
At all times we must conduct ourselves in a respectful manner to other posters. Attacks on individuals, insults, name calling, trolling, baiting or other attempts to sow dissension are not acceptable.
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Re: Small Cap Value heads Rejoice !!!

Post by trickshot »

YRT70 wrote: Wed Oct 13, 2021 4:59 am
nisiprius wrote: Tue Oct 12, 2021 9:04 pm
Wade Garrett wrote: Tue Oct 12, 2021 10:47 am
Whakamole wrote: Mon Oct 11, 2021 9:43 amUnfortunately, there's no access to that site unless you've been invited.
??? I have access to it and I was never invited.
Here's what I see when I try to follow links to the Rational Reminder Community.

Image

Perhaps you established an account before they instituted the "invitation-only" policy?
What happens if you click the sign up button?
I signed up a few days ago. I was approved by a staff member a few hours after signing up.
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Re: Small Cap Value heads Rejoice !!!

Post by Whakamole »

trickshot wrote: Wed Oct 13, 2021 8:14 am
YRT70 wrote: Wed Oct 13, 2021 4:59 am
nisiprius wrote: Tue Oct 12, 2021 9:04 pm
Wade Garrett wrote: Tue Oct 12, 2021 10:47 am
Whakamole wrote: Mon Oct 11, 2021 9:43 amUnfortunately, there's no access to that site unless you've been invited.
??? I have access to it and I was never invited.
Here's what I see when I try to follow links to the Rational Reminder Community.

Image

Perhaps you established an account before they instituted the "invitation-only" policy?
What happens if you click the sign up button?
I signed up a few days ago. I was approved by a staff member a few hours after signing up.
Same. "Invitation only" is misleading; someone just has to approve you.
000
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Re: Small Cap Value heads Rejoice !!!

Post by 000 »

A portfolio invested 100% in SCV stocks and private debt placements would be highly concentrated in the prospects of 'junky' enterprises.
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nisiprius
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Re: Small Cap Value heads Rejoice !!!

Post by nisiprius »

Whakamole wrote: Wed Oct 13, 2021 9:28 amSame. "Invitation only" is misleading; someone just has to approve you.
Shame on them for posting something misleading. Yes, I was able to join without problems. Having joined I have no idea whether I'll do much participating.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
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Re: Small Cap Value heads Rejoice !!!

Post by Massdriver »

I haven’t posted much on RR, but it is refreshing to read so many people that are into factors. It’s a nice change of pace.
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Re: Small Cap Value heads Rejoice !!!

Post by Robert T »

Massdriver wrote: Sun Oct 17, 2021 11:42 pm I haven’t posted much on RR, but it is refreshing to read so many people that are into factors. It’s a nice change of pace.
It is refreshing. Nice to see the free flow of the discussions. Good to hear Larry’s insights again, and also interesting insights from Wes Gray - particularly on fixed income alternatives.
.
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