subject: William Shaw Managed Accounts outperform the ASX 200 by 1.5% in August [print this page] Continuing to perform Continuing to perform
As 2010 marches on and we move swiftly toward the end of another year our Managed Discretionary accounts continue to outperform. During August we performed 1.5% better than the ASX 200 Accumulation index (which means we outperformed the majority of managed funds as well).
All in all the market is still difficult to trade given the continued uncertainty around the strength of the global recovery. European debt and the overall health of the US economy are frequently cited as central reasons for equity market volatility. On the other hand there is also a lot of positive data coming from Australia more broadly almost all of Asia. China continues to power ahead, taking Australia along for the ride. Overall the Australian reporting season was strong with more upside than downside surprises.
Known knowns
The current state of the world's financial health is well known. Almost no stone has been left unturned in the upheaval caused by the GFC. And because of this a lot of the world's financial problems have been brought into focus. With these issue having been hashed and re-hashed governments and companies are now working to fix those issues proactively. Does that mean that we are out of the woods completely? Not exactly, but it also does not mean that there aren't other, unknown factors that could surprise the market and cause another fall.
That said, we have to take certain data at face value and not be afraid to take measured risks when appropriate. As an old colleague once said to us, "this isn't a spectator sport, son" you have to get involved on some level.
50% invested and 80% protected
Currently we have our portfolio 50% investing in three high quality ASX top 20 shares. 80% of those positions are protected by put options to insure against any unforeseen significant pullback. Our current positions are in companies that operate in sectors of the economy that remain very strong, thus as the economy gradually improves the positions should do well. If something unforeseen happens we are covered and have plenty of cash on the sidelines ready to deploy into opportunities to buy quality stock at discounted levels.
William Shaw Managed Accounts outperform the ASX 200 by 1.5% in August
