Saltydog Investor aims to boost fund investors’ returns via a simple strategy: buy what’s rising, avoid what’s falling. Here, Saltydog’s Richard Webb updates us on its cautious portfolio, the ‘Tugboat‘.
Last Wednesday (22 May), when we did our weekly review of fund performance data, the FTSE 100 had just hit a 13-year high. Each sector (by Investment Management Association definitions) in our moderately risky ‘Steady As She Goes’ group, and the more aggressive ‘Full Steam Ahead’ group, was doing well. The bond and gilt sectors in the cautious ‘Slow Ahead’ group had a poor week – only the Absolute Returns sector made reasonable returns. Wehad already halved our holding in the Henderson Long-Dated Credit fund, and this week sold the balance, along with the other sterling corporate bond fund, Fidelity MoneyBuilder Income.
The CF Odey Absolute Fund had a good week, so we raised our holding. Also, the ‘global’ sector has risen to the top of the ‘Steady As She Goes’ group, so we have bought the top-performing fund in that sector, the Baillie Gifford Global Discovery fund. We also cut exposure to Japan, to buy the Neptune US Opportunities fund, as the North American sectors have been rising up the performance tables. But before our orders had even been processed, global markets reversed, with a dramatic 7% fall in Japan’s Nikkei 225. We are prepared to head for ‘Safe Haven’ sectors if the rout continues.
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| Saltydog Group | Fund | % | Last week |
|---|---|---|---|
| Safe Haven | Cash | 23% | 26% |
| Slow Ahead – SOLD | Henderson Long-Dated Credit | 0% | 8% |
| Slow Ahead – SOLD | Fidelity MoneyBuilder Inc | 0% | 20% |
| Slow Ahead | CF Odey UK Absolute Return | 20% | 10% |
| Slow Ahead | PFS Chelverton UK Equity Inc | 7% | 7% |
| Steady As She Goes | Cazenove UK Equity Inc | 10% | 10% |
| Steady As She Goes | Baillie Gifford Global Discount | 20% | 0% |
| Full Steam Ahead | Legg Mason Japan Equity | 6% | 13% |
| Full Steam Ahead | Neptune Japan Opportunities | 7% | 7% |
| Full Steam Ahead | Neptune US Opportunities | 6% | 0% |