Kim explains that, from a portfolio administration perspective, it was his process-driven method that helped steer his purchasers by means of. He had begun portfolio rebalances in This fall of 2024 and Q1 of 2025, extra as a operate of revenue taking after a big bull run than out of worry of a significant geopolitical occasion.
That course of additionally dictated a extra energetic method much less pushed by index matching. Kim’s purchasers had been due to this fact considerably underweight the magnificent seven mega-cap tech names that had been among the many largest losers in April. Positions in small and mid-cap equities supplied some differentiation, as had various allocations to sectors like Canadian multifamily actual property, which Kim says has achieved very nicely for his purchasers.
Kim’s purchasers had loved sturdy fairness returns in addition to stable appreciation of their allocations to non-public belongings. Benefiting from an opportunistic time to trim earnings and add to money positions proved extraordinarily clever come April.
Making that shift, Kim notes, created a better diploma of resiliency in his purchasers’ portfolios. Whereas he notes that they’ve come to anticipate a level of power, Kim additionally noticed some purchasers panicked extra by topline efficiency of main market indices than the efficiency of their very own portfolios. These purchasers who spent extra time watching the information, he notes, tended to return to him with fearful questions in April. Fairly than performing on panic, Kim spoke to these purchasers about their danger appetites, asking if issues had basically modified for them. Their panic turned a part of his course of.
Kim’s rebalancing in This fall and Q1 had been pushed by his course of, he due to this fact did little or no in the best way of portfolio adjustments for his purchasers throughout April’s drawdown. Notably, although, he saved his purchasers in comparatively excessive money equal positions with yields that might nonetheless add to whole return. These positions, which included yield producing investments, lined choice methods, and absolute return methods, helped maintain portfolios steady in an in any other case unstable time.