Pengana's Rhett Kessler tells us about the most significant change currently taking place in his portfolio

Pengana's Rhett Kessler tells us about the most significant change currently taking place in his portfolio. Cash levels have risen to 25% of the Fund. The robust increases in the share prices of several of our holdings resulted in these positions being trimmed. While each case is assessed on individual merits, a simplified (yet accurate) theme is as follows: While we like to have a big bet when we identify good businesses run by competent management at a compelling price, as the price rises the valuation component becomes less compelling and therefore we wish to hold a smaller exposure. On the flip side we have been unable to find sufficient new compelling opportunities to apply cash to. The outcome has been a large cash pile consistent with our mandate that if we cannot find investments that meet all our criteria we will stay in cash.