Not the time to ‘set and forget’
Romano Sala-Tenna, Portfolio Manager at Katana Asset Management, says they’re sitting on the highest level of cash they’ve held in their funds. They see quite a number of significant macro risks for markets at the present time, so they’re happy leaving a lot of cash on the sideline and focussing on the very best opportunities. “If we’re not high conviction about holding this company right here, right now, then why is it in the portfolio?” In their view, ‘generic market exposure’ in undesirable in the current market, and regular reviews of the portfolio are required. “There are times when the best thing an investor can do is put a portfolio in place and turn the screen off for 4 years. Invariably, in a good bull market, we take our profits well ahead of the time we should. In our minds, this is not one of those times.” See the full interview below.