When the Against the Sky Portfolio was initially launched, I stated the principles of the portfolio and how investments would be allocated. Now is a good time to look at the current allocations of the portfolio and re-visit the principles as initially conceived.
Below is a table of the portfolios holdings as of 3/31/09:
|Company||% Portfolio||Target Allocation|
Market turmoil has turned some of my mid-cap companies into small caps, causing my allocation in small-cap companies to rise to 24%. There will not be any sales to decrease this percentage, though I am looking to increase the quality of some of these holdings. With almost 13% of the portfolio in cash, I will be looking to invest in high quality large-caps on market dips.
Initially, I had hoped to invest in companies that I would be comfortable owning for 10 years. Certainly not all of the current holdings meet that criteria. Again, I need to re-focus this portfolio on quality. However, the current market is providing opportunities to buy companies at well-below their liquidation value. These may not be high quality companies, but they do provide significant upside potential. Money will be concentrated in my best ideas over the coming months.