Adding to a Core Position

Reallocating an underweight position

Later today, we’ll be selling out of an underweight position (1% current allocation) that used to be an overweight position and made us a lot of money over the years. We’ve already trimmed earlier this year, and today, investor expectations are even more out of balance (at least that’s how we view it).

It’s not a sale because of poor fundamentals; it’s a sale because of valuation that’s never been higher while the fundamental outlook isn’t meaningfully different from the prior years’. We’ll be talking about it more extensively in our upcoming Q1 Letter (to be released early next week).