Trustnet Magazine 88 October 2022 | Page 25

Hard times

“ It ’ s impossible to flip a small-cap portfolio on a sixpence because of liquidity constraints . We have to set it up from the beginning to be able to weather difficulties ”

Stuart Widdowson Manager of the Odyssean Investment Trust

balance sheets and predictable cashflows during a crisis . Widdowson says : “ We haven ’ t positioned our portfolio for this particular recession , but for all difficult times . It ’ s impossible to flip a small-cap portfolio on a sixpence because of liquidity constraints . We have to set it up from the beginning to be able to weather difficulties .” David Taylor , manager of the Chelverton UK Equity Income fund , says this is not the same as sitting back , watching a portfolio decline and – hopefully – rise again . He believes that it is important to use volatility as an opportunity to create the highest-quality portfolio at the lowest possible price . “ It is important to come out of this environment with a better portfolio than when we went in . We ’ ve started to buy back some of the companies we had previously sold on valuation
Issue 88 - October 2022 / 25 /