Davide Pisicchio Pepperoni Portfolio: Rebalancing Strategy
Managing the Davide Pisicchio Pepperoni Portfolio with a yearly rebalancing, you would have obtained a 10.22% compound annual return in the last 30 Years.
With a quarterly rebalancing, over the same period, the return would have been 8.66%.
How do returns and drawdowns change, implementing different rebalancing strategies?
Rebalancing Strategies
In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Jun 30, 2026
Implementing different rebalancing strategies, the Davide Pisicchio Pepperoni Portfolio guaranteed the following returns.
Portfolio returns are calculated in EUR, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
- the adjustment for actual currency exchange rates (simulation derived from original US returns)
- the currency hedging (simulation taking into account the interest rate differentials of the countries). It is also assumed that hedged instruments have an additional expense ratio of 0.25% (yearly), compared to the US original instrument.
| Return (%) and number of rebalances as of Jun 30, 2026 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y | 30Y |
MAX (~33Y) |
|||||
| No Rebalancing | 28.01 | (0) | 13.41 | (0) | 14.89 | (0) | 10.22 | (0) | 10.20 | (0) |
| Yearly Rebalancing | 17.68 | (1) | 8.77 | (5) | 10.11 | (10) | 8.96 | (30) | 9.04 | (33) |
| Half Yearly Rebalancing | 17.91 | (2) | 8.53 | (10) | 9.99 | (20) | 8.66 | (60) | 8.77 | (65) |
| Quarterly Rebalancing | 18.08 | (4) | 8.53 | (20) | 10.04 | (40) | 8.82 | (120) | 8.90 | (130) |
| 5% Tolerance per asset | 18.70 | (1) | 8.67 | (3) | 10.16 | (5) | 8.91 | (18) | 8.99 | (18) |
| 10% Tolerance per asset | 19.61 | (0) | 9.15 | (1) | 10.70 | (2) | 9.31 | (7) | 9.36 | (7) |
In order to have complete information about the portfolio, please refer to the Davide Pisicchio Pepperoni Portfolio: ETF allocation and returns page.
Performances as of Jun 30, 2026
Historical returns and stats of Davide Pisicchio Pepperoni Portfolio, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 10.20 | (0) | 13.64 | 0.75 | -50.65 | 0.20 |
| Yearly Rebalancing | 9.04 | (33) | 10.34 | 0.87 | -33.30 | 0.27 |
| Half Yearly Rebalancing | 8.77 | (65) | 10.28 | 0.85 | -34.39 | 0.25 |
| Quarterly Rebalancing | 8.90 | (130) | 10.34 | 0.86 | -32.63 | 0.27 |
| 5% Tolerance per asset | 8.99 | (18) | 10.52 | 0.85 | -33.45 | 0.27 |
| 10% Tolerance per asset | 9.36 | (7) | 10.62 | 0.88 | -31.72 | 0.30 |
Drawdowns as of Jun 30, 2026
Historical Drawdowns of Davide Pisicchio Pepperoni Portfolio, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-50.65
Sep 2000 - Oct 2013
|
-33.30
Sep 2000 - Nov 2010
|
-34.39
Sep 2000 - Nov 2010
|
-32.63
Sep 2000 - Nov 2010
|
-33.45
Sep 2000 - Nov 2010
|
-31.72
Sep 2000 - Nov 2010
|
|
-19.21
Jan 2022 - Dec 2023
|
-14.65
Jan 2022 - Dec 2023
|
-14.66
Jan 2022 - Dec 2023
|
-14.57
Jan 2022 - Jan 2024
|
-14.76
Jan 2022 - Jan 2024
|
-15.83
Jan 2022 - Dec 2023
|
|
-16.61
Feb 2025 - Oct 2025
|
-11.98
Jul 1998 - Dec 1998
|
-11.32
Jul 1998 - Dec 1998
|
-11.32
Jul 1998 - Nov 1998
|
-11.55
Jul 1998 - Dec 1998
|
-11.81
Jul 1998 - Dec 1998
|
|
-14.42
Jul 1998 - Dec 1998
|
-10.86
Feb 1994 - May 1995
|
-10.86
Feb 1994 - May 1995
|
-10.92
Feb 1994 - May 1995
|
-10.88
Feb 2025 - Oct 2025
|
-11.49
Feb 2025 - Oct 2025
|
|
-13.58
Feb 2020 - Jun 2020
|
-10.07
Feb 2025 - Oct 2025
|
-10.07
Feb 2025 - Oct 2025
|
-10.22
Feb 2025 - Sep 2025
|
-10.86
Feb 1994 - May 1995
|
-10.86
Feb 1994 - May 1995
|
| 5 Worst Drawdowns - Average | |||||
| -22.90 | -16.17 | -16.26 | -15.93 | -16.30 | -16.34 |
| 10 Worst Drawdowns - Average | |||||
| -16.52 | -11.80 | -11.79 | -11.56 | -11.89 | -12.12 |
For a deeper insight, please refer to the Davide Pisicchio Pepperoni Portfolio: ETF allocation and returns page.