
In short, value is difficult to find
Asset prices across all investment classes are at record highs, including and perhaps especially assets that produce no income.
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Roger Hewitt
:
Hi Roger M thanks for the prompt reply Roger H
roger hewitt
:
Hi Roger M
We are in the main Montgomery Fund (not the Alpha Plus Fund) – so I understand that short selling is not an option. We assume that reverting to cash is part of the protection but how does the Mont Fund manage to reduce the risk of falling prices for the shares that are held? Roger H
Roger Montgomery
:
Hi Roger, In our a long only equity funds it’s the broader flexibility (than many other equity funds) to hold a large amount of cash is the means of overall capital protection.
lakun agrawal
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Hi Roger – does (or will) the Montgomery Fund actively engage in short selling, given your view that asset prices are too high and subject to numerous risks?
Would you consider selling down some of your shareholdings, and holding a larger proportion as cash.. as a safer bet ‘until the dust settles’?
Roger Montgomery
:
The Montgomery Alpha Plus Fund does short sell and yes, we are actively discussing our cash position daily. The Montgomery Fund has the ability to hold as much as 50% cash in extenuuating circumstances. But keep in mind over the long run, you are bettr off in equities than cash.