Thanks for posting. I don't see how you can go too wrong with an allocation like that, and as I mentioned over on the Ray Dalio bond thread I've gone down a somewhat parallel path myself, with around 40% of my total portfolio in Wellesley and the rest in a PP-inspired mixture of equities, gold and (mostly) Treasuries.drumminj wrote: ↑Tue Sep 29, 2020 9:33 am Appreciate all the insights offered in this thread. I don't have anything of substance to contribute to the discussion here other than to share that over the course of the past few years I've invested in Wellesley in addition to the PP, mainly for a bit more diversification (strategy and institution).
I'm about 20% VWIAX and 80% PP with my assets at this point.
Here's a link to an excellent recent Morningstar podcast interview with two of the principal managers of Wellington Group's equities:
https://www.morningstar.com/podcasts/the-long-view/75
You can download the transcript at the link too. I especially enjoyed the discussion of how they mitigate against downside risks.
So yeah, in owning Wellesley you've got an allocation to skilled active management of a couple of sectors (handpicked corporate bonds and dividend-paying stocks) that are far removed from the PP's assets. I see it as analogous to the inclusion of Small Cap Value in the Golden Butterfly except that Wellesley has been an über-successful value play for 50 years.