Kim explains that, from a portfolio administration perspective, it was his process-driven method that helped steer his shoppers by means of. He had begun portfolio rebalances in This autumn of 2024 and Q1 of 2025, extra as a perform of revenue taking after a major bull run than out of concern of a serious geopolitical occasion.
That course of additionally dictated a extra lively method much less pushed by index matching. Kim’s shoppers have been due to this fact considerably underweight the magnificent seven mega-cap tech names that have been among the many largest losers in April. Positions in small and mid-cap equities supplied some differentiation, as had different allocations to sectors like Canadian multifamily actual property, which Kim says has accomplished very properly for his shoppers.
Kim’s shoppers had loved robust fairness returns in addition to stable appreciation of their allocations to personal property. Making the most of an opportunistic time to trim income and add to money positions proved extraordinarily sensible come April.
Making that shift, Kim notes, created a larger diploma of resiliency in his shoppers’ portfolios. Whereas he notes that they’ve come to count on a level of power, Kim additionally noticed some shoppers panicked extra by topline efficiency of main market indices than the efficiency of their very own portfolios. These shoppers who spent extra time watching the information, he notes, tended to return to him with anxious questions in April. Reasonably than appearing on panic, Kim spoke to these shoppers about their danger appetites, asking if issues had essentially modified for them. Their panic turned a part of his course of.
Kim’s rebalancing in This autumn and Q1 have been pushed by his course of, he due to this fact did little or no in the way in which of portfolio modifications for his shoppers throughout April’s drawdown. Notably, although, he stored his shoppers in comparatively excessive money equal positions with yields that would nonetheless add to complete return. These positions, which included yield producing investments, lined choice methods, and absolute return methods, helped maintain portfolios secure in an in any other case unstable time.