Coffeehouse
StaticPromoderateBased on research by Bill Schultheis · Schultheis, B. The Coffeehouse Investor (1998)
This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.
Launched Nov 28, 1998About this Strategy
Conservative 7-fund portfolio: 40% bonds, 60% equities diversified across large, small, value, international, and REITs..
The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.
Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.
Strategy Rules
Pro subscribers only
- 1Allocate 40% to AGG (US Aggregate Bond)
- 2Allocate 10% each to: SPY, IVE, IJR, IJS, EFA, VNQ
- 3Rebalance annually or when drift exceeds threshold
Key Differentiators
Research Source
Based on research by Bill Schultheis
Schultheis, B. The Coffeehouse Investor (1998)
Strategy Info
- Type
- Fixed / Strategic
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (227d)
- Variants
- 1
- Risk Category
- moderate
- Tags
- static
- Type
- Fixed/Strategic Asset Allocation
- Trading Frequency
- Annual or on-drift rebalancing
- Number Of Holdings
- 7 ETFs
- Equity Allocation
- 60% (6 × 10% slices)
- Bond Allocation
- 40%
- Factor Tilts
- Small-cap, Value, REITs
- Risk Level
- Moderate
Asset Classes
Coffeehouse at a glance
Coffeehouse is a fixed-allocation portfolio by Bill Schultheis across US Large-Cap Equity, US Large-Cap Value, US Small-Cap Equity, US Small-Cap Value, rebalanced annual. Backtested 1987-12-31 to 2026-05-20 (38.4 years): 8.6% CAGR, 0.82 Sharpe, -38.3% max drawdown, 10.7% volatility.
- Type
- Fixed Allocation
- Author
- Bill Schultheis
- Rebalancing
- Annual
- Risk
- Moderate
- Period
- 1987-12-31 to 2026-05-20
- CAGR
- 8.6%
- Sharpe
- 0.82
- Max Drawdown
- -38.3%
- Volatility
- 10.7%
Coffeehouse — Fixed Allocation Portfolio
Bill Schultheis' Coffeehouse portfolio uses a 40/60 bond/equity split with the equity portion diversified across six 10% slices: large-cap blend (SPY), large-cap value (IVE), small-cap blend (IJR), small-cap value (IJS), international (EFA), and REITs (VNQ). The equal weighting creates automatic factor tilts toward small-cap and value.
Backtest Performance (1987-12-31 to 2026-05-20)
| Metric | Coffeehouse |
|---|---|
| Compound Annual Growth Rate (CAGR) | 8.6% |
| Maximum Drawdown | -38.3% |
| Sharpe Ratio | 0.82 |
| Sortino Ratio | 1.01 |
| Annualized Volatility | 10.7% |
| Calmar Ratio | 0.22 |
| Total Return | 2255.7% |
| Backtest Period | 38.4 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- moderate
- Variants
- 1
- Author
- Bill Schultheis
- Source
- Schultheis, B. The Coffeehouse Investor (1998)
Asset Classes
- US Large-Cap Equity
- US Large-Cap Value
- US Small-Cap Equity
- US Small-Cap Value
- International Developed Equity
- REITs
- US Bonds
Categories
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