Multi-manager Hawksmoor says monthby-month performance has its place in the management of its Vanbrugh fund of funds even though more weight is placed on longer-term performance.
The firm says that as Vanbrugh is not an absolute return fund that aims to outperform a cash benchmark, it does not focus too much on monthly performance figures but does use shorter-term figures to keep an eye on performance and make sure it is investing in the right holdings. It believes you have to look back to last month to see if a holding should be increased or sold.
Fund manager Daniel Lockyer says managers are always looking forward to make today’s portfolio appropriate for tomorrow. The multi-manager team uses a “would I buy it today” test for its portfolio holdings.
Lockyer says: “If the price has moved up since we bought it, we ask ourselves where is the future value going to come from? When we buy something, we ask ourselves where do we think the upside rewards and downside risks are? We look at everything to make sure it is still right and would I own it today?”