The scoreboard

Filled today: GILD 1.04%→~1.97% — bought 71 sh @ $133.54, funded by SPY trim. Book: 14 names, SPY ~67.8%, cash $17,435. Smallest active name lifted toward the weight it earns (+6.03%, β0.332); clean add, min-holdings floor untouched.

Frame: late-cycle, reals 2.33 (cycle-high) / 10yr 4.58 — duration cap on, quality + low-vol + cash-flow-today, energy hedge intact.

Open item: CME close vetoed again (13 vs 18 min-holdings). Can't close solo. Recycle owed since 06-18 needs a paired open to hold count 14+, or we change the floor math. No dissent, no open risk flag. Carrying to next session.

#84 — GILD resize 1.04% → 2.5%, vote called. Ops flagged two targets (agenda 2.0% vs my filed #84 at 2.5%). As chair I resolve to the filed proposal: 2.5% is the number we vote.

Live: 79.41 sh @ $124.21, mark $131.70 — 1.04% weight, +6.03%, +5.9bps active, β0.332. Smallest active name at half the weight it earns. ~146bps fresh notional (~+110 sh / ~$14.6k) funded from SPY.

Why it's clean: this is an add, so count stays 14 — it does NOT reopen the CME close, which vetoed at 13 vs the 18 min-holdings floor. β0.332 additive to the 0.90 floor cushion; low-vol / cash-flow-today defensive-quality tilt per Priya's reals-restrictive frame. Health Care neutral to SPY. 15.2x fwd, 39% op margin, 43% ROE.

Catalyst: Q2 ~08-06, outside freeze. Stop: base-business rev down y/y ex-charge, op margin <~35%, or -15% rel. Ignore the -7.09 GAAP EPS estimate — one-time item; clean quarterlies $1.86-2.43, four straight beats.

Daniel — aye. Margaret/Priya/Iris to vote; ops non-voting.

Still owed: the CME recycle. Can't close CME solo under the count floor — needs a paired open or the min-holdings math has to change.

#81 CME full close — carries 4-0. Margaret aye, Daniel aye, Priya aye, Iris aye. Ops non-voting.

The trade: close CME entirely. Live: 95.04 sh @ $263.19, mark $245.18 — 2.32% weight, -6.84%, -17.1bps active since inception, β0.26, second-worst detractor behind only the SPY albatross. No franchise thesis left on a β0.26 dead-money financial; Q2 ~07-22 forces the call today. Full close, not a trim. Crystallizes ~-$1.7k already on the mark — closing stops the bleed, creates no new downside.

This is the recycle leg of the four-leg slate: CME close funds HD 2.5% + AAPL 2.3% + SPY→65.5% — carried 4-0. All four legs go as one inseparable basket. Retiring a -17.1bps active financial and recycling the dollars into the active TMT and Consumer Discretionary underweights the slate seats; trims the +6.9pp financials overweight, energy hedge untouched.

Book after slate: 14→15 names, β0.9215→0.9323, cash 1.72→2.51%, top-5 76.7%, both Cons Disc and TMT underweights closed. Triggers carry: OAS>350 → XOM/FDX first cut; reals<1.90 + 10yr<4.30 → ease low-vol.

#80 (GOOGL open) — disposed as stale, 4-0. Margaret, Daniel, Priya, Iris all concur: nothing to table.

GOOGL is a working position, not an open — confirmed live against the snapshot: 69.6 sh @ $355.52, mark $371.14, 2.57% weight, +4.4%, +10.9bps active since inception. No open, no size, no loss path — nothing for the gate to catch. The agenda line is a leftover pointing at a name we already own.

The live business of the session stands: the four-leg slate — CME close + HD 2.5% + AAPL 2.3% + SPY 68.8%→65.5% — carried 4-0 and is re-filed at the voted 65.5% after ops' stale-68.10% veto (plumbing, not risk). That basket goes as one; #80 is not part of it.

Book after slate: 14→15 names, β0.9215→0.9323, cash 1.72→2.51%, top-5 76.7%, both Cons Disc and TMT underweights closed. Triggers carry: OAS>350 → XOM/FDX first cut; reals<1.90 + 10yr<4.30 → ease low-vol.

The veto was plumbing, not risk. Ops applied a stale 68.10% SPY target (old agenda number) that tripped the single-name cap. The room voted 65.5%. Re-ran the four-leg basket live at 65.5%:

• would_clear direction-aware — only flagged breach is the pre-existing SPY single-name cap, which the trim REDUCES (68.8%→65.5%).
• β 0.9215→0.9323 (holds 0.90 floor with room), cash 1.72→2.51% (cures sub-floor), 14→15 names, top-5 76.7%, Cons Disc→9.7%, TMT→25.1%.

Re-filing CME close + HD 2.5% + AAPL 2.3% + SPY→65.5% as one inseparable basket at the voted weights. Same slate carried 4-0 — I am only correcting the funding-leg number ops mis-keyed.

Separately: GOOGL (#80 on the agenda) is stale — already in the book at 2.57%, +4.4%, +10.9bps active. Nothing to open.

#78 SPY 68.8%→65.5% — carries 4-0. Margaret for, Daniel for, Priya for, Iris for. Ops non-voting.

The SPY leg is the funding side of one inseparable four-leg slate: CME close + HD 2.5% + AAPL 2.3% + SPY→65.5%. All four legs go together.

What it does: 14→15 names (the campaign headcount advance), closes BOTH the Consumer Discretionary AND TMT active underweights in one basket, crystallizes the CME recycle I've owed since 06-18, β0.9215→0.9323 (holds the 0.90 floor with room), cash 1.72→2.51% (cures the sub-floor), top-5 76.7%. Gate cleared direction-aware — the only flagged breach is the pre-existing SPY single-name cap, which the trim REDUCES.

On the record: AAPL enters at a fresh 52w high ~38x — buying strength, sized 2.3% not full 2.5% on that caveat. HD ~18% off its high is the cleaner trough entry. Slate seats both. Financials +47bps engine untouched.

Ops works the SPY trim into 37-44M sh daily volume — one-tick sizing, no slippage. Triggers carry.