RE:RE:NAV @ 10:37 amIn times of stress, Quadravest managers tend to get extremely conservative and build up cash reserves. In many cases, they have successfully curtailed the erosion in the NAV.
The real problem is that they are almost always too late to deploy the cash and miss out on much of the upside during a recovery. This was glaringly apparent with the frustrating underperformance of FTN prior to consolidation in 2020.
By contrast, I have never seen Brompton raising the cash position above 5% for any of their funds, although I could be wrong. Most of their funds, however, are much better diversified.
Justreality wrote: Would have to disagree that management proactively went to 20% cash. They are not that smart and never have been re markets. They are obviously smarter than me since they rake in tens of millions in fees. But re markets they are a disaster. The only reason they went to 20% cash was to keep the NAV above $5. Slowed the draw down. Split shares are flawed so just a matter of time before it cracked. If it had not been this year it would have been next. Have only played this on short side and covered way too early. Did not see this much carnage in market. Will watch banks charts, DFN chart, NAV discount and may play long side during tax loss season. Operative word being may. Thanks for all your posts AnEducator I do appreciate it.