During the past month, the model has used the broad market rally to initiate a number of new positions and to exit or re-size others.
Significant purchases included a closed end fund which is seeking to narrow its discount to underlying Net Asset Value as a result of activist pressure, a struggling supply chain company with significant hidden assets in the form of tax loss carry-forwards, and a telecoms provider embroiled in a high profile takeover dispute with one of its largest shareholders.
Holdings in a number of positions were reduced or re-sized to reflect changes in their underlying fundamental value relative to the current market price.
The model maintains a moderate cash balance and continues to seek attractive opportunities in which to invest, whilst being unwilling to compromise on the value we week.
