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.