Managed Accounts Put Options Purchase

Friday, July 9th, 2010

Good afternoon,

yesterday we purchased Put Options for 1.5% of the portfolio. In essence, this purchase protects approximately 40% of the managed discretionary accounts portfolio against a fall in the market between now and December this year. Our portfolios are currently invested to approximately that same level. Should we be presented the opportunity to accumulate more quality, good value holdings, we feel it is prudent to be at least partially covered.

As it stands, the data coming out of the US and Europe is still very mixed, even after a 2 day rally in the DOW the market remains on tenterhooks. The story that has people’s attention can be summed up by a recent headline: “You can’t fix a debt problem with more debt”.

This is exactly the issue we had flagged to you over previous weeks, and for the time being if the market continues to fall we will be net beneficiaries of that fall. As always should the market fall we will be looking for opportunities to add quality stocks to our portfolio at value levels.

We will keep you updated, however in the mean time if you would like to speak with us about anything please call the desk.

Tags: Managed Funds, Managed Share Investments, Share Trading Recommendations

Posted in Managed Account Investment Notifications, Share Trading Recommendations

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