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Why We're at 25% Cash

hank
edited April 2013 in Fund Discussions
http://finance.yahoo.com/news/market-beating-funds-why-25-135248862.html

"As the team explained in its first-quarter note to shareholders, it’s not out to market time, but rather, “to improve our odds by investing more aggressively when the valuations are favorable and to hold onto cash reserves when the opportunity set is less attractive. We believe that cash has “option” value—being able to respond quickly to buying opportunities has contributed to our results over the years."

Comments

  • David_Snowball
    Weitz Partners Value (WPLVX). 28 stocks, almost all domestic, 25% cash in 2013 but an average cash position around 22% from 2009-present. Top 2% of LCV funds over that period. They had a long period of weak performance from 2003 - 2009, fell sooner and longer than most in the meltdown then rebounded ferociously despite the cash drag. Morningstar loves it.

    For what interest it holds,

    David
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