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Thursday, 26 Jul 2018
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Cash Weighting

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

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