Positioning for '09: How 10 Money Managers Are Adjusting Portfolios

by: SA Editors

As we turn the corner into 2009, we asked ten top Seeking Alpha contributors who are professional money managers how they are adjusting client and personal portfolios at this stage: Is it still time to hunker down defensively - or a time of unprecented opportunity? And what stocks, ETFs and other instruments are you using to apply that strategy?

We'll run a new response each day through the first week of 2009, and update this page accordingly:

Roger Nusbaum of Your Source Financial expects a sharp rally during the course of the year that he's prepared to fade with inverse ETFs if it builds too quickly. He's recently made purchases in four sectors, and expects to enter four others very soon.

Amit Chokshi of Kinnaras Capital Management believes investors who can do substantial work at the company level should be positioned to benefit by implementing long/short strategies.

Mark Sunshine, President of First Capital and the President and CEO of Siemens First Capital, sees banks beginning to lend in earnest to each other in January, and believes increased liquidity will push the major indexes higher by year's end.

Mebane Faber, portfolio manager at Cambria Investment Management, expects a bounce across the board in January, with beaten down small- and micro-caps most likely to move. Mebane also thinks it's time to get long Japan.

David Fry of ETF Digest believes the best opportunities will remain in sectors that trend well, from a long or short perspective. And regarding new ETFs hitting the market, Fry warns: "If you can't get adequate historical data for the index, forget about it."

Kevin S. Price of Interlake Capital Management asserts that "all but the most risk-averse investors should have some exposure to risky assets at this juncture," and suggests wading back into equities through a series of smaller commitments.

Jeff Miller of NewArc Investments believes now is the time to get back into equities and has set an initial target of Dow 11,000 - a 20% jump.

Nadav Manham of Elera Advisors LLC observes that there are billions of dollars on the sidelines for fear of near-term volatility, and believes those who step into the breach - with a long-term horizon - will be rewarded.

Zachary Scheidt, CFA of Scheidt Capital Management, LLC names four emerging themes that he believes any opportunistic investment account should consider.