Bear­ing up

Finweek English Edition - - COMPANIES&MARKETS -

RE:CM AND CAL­I­BRE (RACP) – the in­vest­ment ve­hi­cle headed by well­known as­set man­ager Piet Viljoen – is clearly in no hurry to plunge into the mar­ket. RACP’s quar­terly port­fo­lio as at end-March held pretty much the same po­si­tion as at year-end 2010, with more than 90% of the port­fo­lio still held in cash. That means didn’t take ad­van­tage of the early year mar­ket weak­nesses and the re­cent jit­ters caused by po­lit­i­cal up­heaval and earth­quakes. It also means RACP is bank­ing on there still be­ing a big sell-off (ulp) in eq­ui­ties this year.

It might be dif­fi­cult for RACP pref­er­ence share­hold­ers – the com­piler of this col­umn in­cluded – to en­dure such “in­ac­tion”, es­pe­cially if the mar­ket con­tin­ues to of­fer value. (The ir­re­press­ible Vic de Klerk has al­ready been bend­ing our ears about how much value RACP might have cre­ated by buy­ing BAT and Wool­worths for their re­spec­tive yields.)

Things, of course, need to be viewed over the longer term and it re­ally still is early days for RACP. Mean­while, what we’d re­ally like to know is which eq­ui­ties (the 9% por­tion of the port­fo­lio) have cracked the nod at RACP.

PIET VILJOEN

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