portfolios and rebalancing

A lot has been previously discussed on why the Australian Ethical Small Cap Fund has been selling...

Just looking at their portfolio at the last 6 month's it because the portfolio manager has to re balance and offload TIS because the rest of their portfolio may not be doing as well.

I did an analysis of their portfolio over the last 6 months and TIS is their standout stock....up 230%.

Their portfolio is below...They had about $160 million invested across the below stocks.
18 stocks went up...TIS being their largest gainer.
11 stocks went down
and the rest did nothing much....


78.80% (37 stocks)

Amcom Telecommunications Ltd Down 10%
APN News & Media Ltd Down 15%
ASG Group Ltd Down 30%
Australian Pipeline Trust N/A
Bendigo & Adelaide Bank Ltd Up 5%
Blackmores Ltd Up 20%
Cochlear Ltd Up 15%
Computershare Ltd No Change
Energy Developments Ltd No Change
Fairfax (John) Holdings Ltd Down 15%
Fisher and Paykel Healthcare Corporation Ltd Down 5%
Green Cap Ltd Down 5%
Hansen Technologies Up 25%
iiNet Ltd Down 20%
ImpediMed Ltd No Change
Infigen Energy Down 50%
Intrapower Ltd No Change
IRESS Market Technology Ltd up 10%
Macquarie Telecom Group Ltd Up 100%
Melbourne IT Ltd No Change
Oakton Ltd Down 20%
Origin Energy Ltd up 10%
Petratherm Ltd Down 40%
Pharmaxis Ltd Up 20%
Primary Healthcare Ltd Down 10%
QBE Insurance Group Up 5%
QRX Pharma Ltd Up 45%
Qube Logistics Ltd Up 60%
Ramsay Health Care Ltd Up 20%
REA Group Ltd Up 10%
Sims Metal Management Ltd Up 5%
Sonic Healthcare Ltd No Change
Suncorp-Metway Bank Ltd No Change
Technology One Ltd Up 10%
Tissues Therapies Up 230%
Transpacific Industries Group Up 10%
Westpac Up 5%



That's the reason why you might see a large seller come in and offload as it may breach their portfolio percentages and they may need to rebalance...in this case TIS weighting is becoming too large as apart of their portfolio....

DYOR.