If you read our recent quarterly SMA reports you would have read that two processes are run side-by-side when managing the Marcus Today SMA.
- Stock picking and timing.
- Managing market risk.
Let’s focus on the second one for a moment.
The Marcus Today SMA manages market risk by raising and lowering the cash weighting in the portfolio. How much cash we hold is a daily debate and there are no rules. We simply wake up every morning and make a decision. We rarely get scared by the market but can rapidly run up cash levels if we do. And reverse it again when the squall is over.
On that basis, it is a useful piece of information for members to know what our current SMA cash weighting is. The cash weighting is a quasi distillation...Continue Reading