They are playing it very safe! The portfolio is now significantly less concentrated, reduced giant-tech weightings, increased consumer staples brands, increase cash weighting and the recent addition of UnitedHealth Group. They know they can't have another stock specific disaster and have now essentially removed this risk.
Their play book for them from here is:
- Don't take big bets. De-risk the portfolio. Reduce concentration.
- Stabilise returns and build back investor support (discount is still 18%)
- Convert to an open ETF once options expire in 2024.
My playbook from here is:
- Not expect market beating returns from the underlying portfolio
- Not expect any disasters
- Wait for the conversion to open ETF in 2024
- Earn a greater yield while I wait due to the discount to NAV
- Sell at NAV in 2024
The downside risk (relative to the market) here is very low.
The fund is still holding most of the same stocks from pre Douglas' departure.
Top 10 holdings December 2019 = 54.1%
Top 10 holdings December 2022 = 41.8%
Ann: MGF Fund Update - February 2021, page-479
-
- There are more pages in this discussion • 43 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)