Author Topic: Portfolios - how do you organize them?  (Read 7274 times)

rockinray

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Portfolios - how do you organize them?
« on: March 29, 2013, 08:03:34 AM »
Hi all -

New to this for the past few months now... I am curious how you organize your portfolios?

Right now I have mine by note grade and I wonder if that is the best approach.

Any feedback would be great!

Many thanks.

Ray

Zach

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Re: Portfolios - how do you organize them?
« Reply #1 on: March 29, 2013, 09:07:31 AM »
Hi all -

New to this for the past few months now... I am curious how you organize your portfolios?

Right now I have mine by note grade and I wonder if that is the best approach.

Any feedback would be great!

Many thanks.

Ray

I think your question is more of a personal preference question, but in my opinion, as you progress in p2p lending, change the portfolios as different strategy groups.

For example, when I started, I invested manually in everything, then moved to subscription-based scoring/picking services P2P-Picks, and now Interest Radar. It allows me to compare the performance of notes based on the strategy I used at the time.

My personal recommendation is that you signup for Interest Radar. The service has some awesome features such as proprietary scoring model to maximize returns, but also has a portfolio manager attached that allows you to track your performance on a much deeper level than LC.

But again, this is a personal preference of organizing, so whatever works for you.

Lovinglifestyle

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Re: Portfolios - how do you organize them?
« Reply #2 on: March 29, 2013, 11:57:35 AM »
I like mine by the month and term.  When I made the change from 36 only to also 60 I had to move from one Port. a month to two.  This month, for example, is "44.  03-2013 36" and "44.  03-2013 60".

If I want to track something for that month, I add a hint, such as "44. 03-2013  60 words".  Later, if desired, I can merge the tracked ones into the general folder easily.  The "44" refers to my 44th month of investing (I took a 10 month break from investing to save for a car) between months 24 and 25 in the monthly investment records).   So it has been 54 months total since I began investing.

  This is working well for me.  A couple of times I revised the titles to find a system that would sort chronologically.  On my wish list would be an LC way to copy notes into a second portfolio without losing them from the first so I could do custom sorting.

I second the recommendation by zpbsfg to sign up for Interest Radar.  For getting to see a total account balance not seen on IR, I recommend PeerCube--which could mean another portfolio! 

Peter

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Re: Portfolios - how do you organize them?
« Reply #3 on: March 29, 2013, 12:04:56 PM »
As others have said this is a personal preference. I am like zpbsfg, I group by strategy. Mine has changed regularly over the years and I like to be able to go to Interest Radar or Nickel Steamroller and upload my portfolio and compare my strategies over time. Also, I have several accounts and will sometimes use the same strategy over multiple accounts (if there happen to be a lot of notes available), so it is nice to be able to track everything with portfolios.
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AnilG

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Re: Portfolios - how do you organize them?
« Reply #4 on: March 29, 2013, 12:22:24 PM »
In one account, I have setup portfolios based on interest rate buckets. Each portfolio bucket covers 2% interest spread. I created this after analyzing the historical data and determining that the largest contributing factor to defaults is interest rate. I strictly use only one strategy since opening this account and have no plans to modify the strategy for this account.

My other newer account uses no portfolios. I chose this option after realizing with first account that I rarely review my first account and rarely look at portfolio page.

I am quite hands-off with my accounts, once I made lending decision for new loans. All my effort goes toward reviewing new loans and making decision whom to lend. Afterward, I pretty much ignore what is happening with purchased notes.
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rockinray

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Re: Portfolios - how do you organize them?
« Reply #5 on: March 29, 2013, 02:18:27 PM »
You all have given me things to think about! I agree it is a personal thing, I was mostly reaching out for ideas... Like I stated, mine are by note grade at this time...

Time to play a bit!

Thanks for the feedback!

Ray

rawraw

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Re: Re: Portfolios - how do you organize them?
« Reply #6 on: March 29, 2013, 03:48:38 PM »
In one account, I have setup portfolios based on interest rate buckets. Each portfolio bucket covers 2% interest spread. I created this after analyzing the historical data and determining that the largest contributing factor to defaults is interest rate. I strictly use only one strategy since opening this account and have no plans to modify the strategy for this account.
Anil, so your saying lending clubs evaluation of risk is the most accurate than any individual variable?
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AnilG

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Re: Re: Portfolios - how do you organize them?
« Reply #7 on: March 29, 2013, 06:52:47 PM »
Anil, so your saying lending clubs evaluation of risk is the most accurate than any individual variable?

Yes, I analyzed interest rate and covered on my blog in detail last year. Lending Club has done really well with assigning interest rate according to risk. Historically with non p2p and p2p loans both, FICO is also a very good predictor of default.
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rawraw

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Re: Portfolios - how do you organize them?
« Reply #8 on: March 29, 2013, 09:30:00 PM »
I organised mine by strategy

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brycemason

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Re: Portfolios - how do you organize them?
« Reply #9 on: March 30, 2013, 01:06:37 PM »
One would hope that interest rate predicts risk the best, as interest rate is the final reflection of all their credit modeling, taking into account all the borrower attributes that play into default.  Unfortunately, interest rate is not usable as an attribute to predict default. It's a bit chicken and egg.
« Last Edit: March 30, 2013, 01:09:26 PM by brycemason »

SeanMcD

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Re: Portfolios - how do you organize them?
« Reply #10 on: April 08, 2013, 08:46:06 PM »
I used to group different strategies while I was initially trying things out, but the only thing I currently use portfolios for is to group the notes that I want to sell on FolioFn.  This makes listing and re-listing notes very simple, since I can filter by portfolio on the Sell Notes page.  I've found this to be a big time saver ever since FolioFn started cancelling a large percentage of note listings on payment even though there was no pending purchase.

edward

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Re: Portfolios - how do you organize them?
« Reply #11 on: April 08, 2013, 08:57:55 PM »
SeanMcD-
What an elegant solution to a common problem. Thanks for sharing!