During September the Stonehouse Core Value Portfolio was in the black contributing to a solid +3.25% performance for the quarter. From an asset allocation perspective we have retained our fairly defensive positioning – with some of the benefits of this cautious stance coming to pass through September. For the moment though we’re keeping our powder dry with the aim of opportunistically positioning in oversold assets in order to seek value – potentially post some resolution to the present fiscal impasse in the United States.
In the interim, the investment committee is ensuring our ‘insurance policy’ positions (i.e. volatility traders, long/short equity managers and CTA’s) are being topped up so that should equity markets slide into substantive negatives the downside risk to the portfolio would be limited.
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