Managing Cash as a Buying Reserve
Cash is a direct result of the investment process and builds when purchase opportunities are not available.
Cash reserves tend to accumulate as the stock markets are moving up and usually diminish as the markets come down and more bargains appear.
We do not believe in being 100% invested at all times. Cash is always considered a buying reserve and is committed as the markets come down and more stocks become cheap, according to our criteria. This is one of the more significant differences between KCM and other managers.