Thread by @TihoBrkan

Our portfolio allocation is somewhat planned, but to a great extent very much accidental, as it's based upon "value" offered in different assets, regions & capital stack positions at any given time in the cycle.

In other words, it is more of an art than science.

It can be added that many other market participants do not behave under such mandate, since they are far more authoritarian in their allocation approach.

Rather than searching for value currently on offer, they'll keep buying overpriced assets as it's within their comfort zone.

Flexibility & patience are our edges to mitigate risks & outperform.

As public equities become overpriced we're likely to sidestep into real estate. And when it becomes overpriced, we'll consider special niches like litigation funding, mezzanine debt, or distressed PE deals.

At any moment the situation changes in public markets and certain individual co's or broader sectors start offering value,

due to market repricing events like a crash or a crisis,

we are sure to make a return to that area, looking for quality at an attractive price.

Therefore, in summary, one can see why our portfolios are planned only to a degree.

But to a larger extent end up being very much accidental based on what is on offer (value-wise) at any point in the cycle.

We are after very attractive terms with a meaningful margin of safety.