48% Cash; Reducing Positions
By Barry Ritholtz - January 20th, 2011, 9:52AM
I mentioned in comments last week we were 48% cash in our Long/Short Portfolio; One of the asset allocation models we run is now 20% cash, 20% bonds.
As we are starting to get into the meat of the earnings season, more and more profit taking is likely. We are overdue for a pullback, and the past few earnings seasons have ended with markets dropping. Hence, our (small) QID) position.
Our current holdings/entry prices/weightings in our managed accounts Long Short portfolio are after the jump.
Recent sales:
-EK (recently stopped out)
-BWA, IDCC and RAX was sold off several weeks ago.
Current Holdings (still long):
ACI
CVE
SU
UNH
ATVI
ATI
SOLR
PZZA
AM
Tweet
Facebook
Reddit
Digg this!
January 20th, 2011 at 10:21 am
Might I just add that I’ve reduced some positions in my own small fry portfolio, notably, energy. After a nice 40% run up in BP, I’m closing down that position some. We are indeed overdue a correction, and it might start with commodities and related companies.
January 20th, 2011 at 11:04 am
You must have killed on RAX if you sold more than three weeks ago.
January 20th, 2011 at 11:40 am
[...] 48% Cash; Reducing Positions [...]
January 20th, 2011 at 12:18 pm
Can’t say it is a bad call. I am seeing signs $90+ crude is a serious headwind for many parts of the global economy.
January 20th, 2011 at 12:27 pm
BR, is it just me, or does someone at your firm love weekly inverse H&S bottoms and weekly cup/handle patterns?
The ones on your list look good, but along with stops, keep in the back of your mind the CSCO monthly chart from 2002-2007. That looked like a very nice cup/handle pattern that broke up, but it was a false break.
January 20th, 2011 at 12:46 pm
BR,
when you Sell stocks, do you, subsequently, Short them?
(it’s a question that, when directed to me, I don’t have a good answer for..)
January 20th, 2011 at 5:07 pm
Once again Barry, thanks for the heads up.
January 26th, 2011 at 6:29 pm
Missed this post. Thanks!