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Portfolio
At Chico Creek Capital, we benchmark our portfolio and sector allocations against the S&P 500 to measure how well our investments perform compared to the broader market. By aligning our portfolio’s sector weightings with the index, we ensure proper diversification and can easily identify where we might be over or under-exposed in specific sectors. This helps us make informed decisions and adjustments to maximize returns while managing risk effectively.
Current Weightings
Analysis
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Our current portfolio weightings reflect a strong emphasis on Technology (19.7%) and Financial Services (11.5%), followed by Communication Services (9.5%). These sectors dominate our holdings, with Technology and Financial Services driving much of the growth. However, our high allocation in "Cash & Other Positions" (31.6%) suggests an overly cautious approach, indicating room for reallocation to more actively managed sectors. The portfolio's exposure to defensive sectors such as Healthcare and Consumer Defensive remains relatively low, which presents a potential area for adjustment to balance growth and risk more effectively.
Target Weighting
The target weightings aim to reduce the "Cash & Other Positions" down to 10%, freeing up capital to increase investments in key growth sectors like Technology (25.5%), Healthcare (10.1%), and Consumer Cyclical (9.3%). These adjustments are designed to bring our portfolio more in line with the S&P 500 sector weightings while seeking alpha by slightly overweighting sectors like Technology and Financial Services. This shift will also help diversify risk, as we plan to increase exposure to traditionally defensive sectors like Consumer Defensive and Healthcare, ensuring a more balanced approach while striving for higher returns.