Q: Hi,
I try not to time the market and positions too much, but when you see a position run into earnings, for example HPS.A, would you trim? I have a 4.91% position and its been doing very well. For smaller or mid cap names that are more volatile, what % do you hold these names at vs a large cap core position? I'm thinking of trimming down to 3.5-4% before earnings, although long term I still like the tailwinds for these power companies. Thanks!
I try not to time the market and positions too much, but when you see a position run into earnings, for example HPS.A, would you trim? I have a 4.91% position and its been doing very well. For smaller or mid cap names that are more volatile, what % do you hold these names at vs a large cap core position? I'm thinking of trimming down to 3.5-4% before earnings, although long term I still like the tailwinds for these power companies. Thanks!
5i Research Answer:
While we cannot comment on personal position sizes, typically for a smaller company we would want to start trimming at 5%. This is on the assumption that one still likes the company, and a small cap can still move a lot. Thus, a 5% position can still grow to 7.5% if things work out.