The Munro Global Growth fund has begun to put cash to work, almost halving its cash exposure.
Last month, the firm wrote how it was holding 40% of its portfolio in cash while it waited for signals such as stabilisation of long-term bond yields, attractive valuation multiples and lower earnings expectations.
It had now reduced the weighting to 26%.
In an investor note, it said: “The fund put some cash back to work during the month as confidence grew that the stocks with resilient earnings had finished the de-rating that persisted for several months”.
It did not disclose what had been bought but top five holdings in the fund included Microsoft, Alphabet, Danaher, Visa and Amazon, three of which had contributed to recent performance. It also had a large overweight to the US with 61% of the $1.4 billion fund invested in that region.
“Strong earnings results from large-cap companies, particularly from the technology sector, helped propel markets forward,” the team said.
“From a stock perspective, Amazon, Microsoft and Danaher all saw their shares rally on the back of solid results.”
Shares in Amazon, for example, had lost 18% since the start of the year but had improved more recently with the stock up 24% over the past month to 08 August. Similarly, Microsoft was down 16% since the start of the year but up 6% over the past month.
