During October the Stonehouse Core Value Portfolio performed strongly – recording a solid +1.46% performance for the month. The Portfolio’s asset allocation has retained its defensive characteristics with holdings in diversified positions being used to counter downside risk in equity exposures in readiness for the inevitable end to recent strong equity market performances.
The shift into emerging markets on an opportunistic basis – when the asset class was sold down aggressively in light of US Federal Reserve tapering fears – paid handsomely with the sector recording a very strong (+4.8% USD) monthly performance. In a similar vein, we are opportunistically looking for other value prospects should they present themselves with the Australian Resources sector presently coming under our spotlight. Each of these new exposures is complemented by an appropriate mix of diversifying positions through exposures to volatility traders, gold bullion and long/short managers aimed at bolstering the capital preservation aspects of the Portfolio.
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