Writing in its September 2018 update, the MHOR Australian Small Cap Fund said performance for the month was driven by exposures to mining services and resources, specifically energy.
The fund exited the month with 48 investments, and 16 per cent cash. Portfolio managers James Spenceley and Gary Rollo are modestly bullish and expect the share market to continue its grind higher.
In September, the fund increased its resource related exposure to a modest overweight, swapping some mining services names for resources.
The fund’s largest underweight remains the discretionary consumer sectors as the managers continue to see headwinds from house price declines and credit tightening impacting domestic consumption.