by Tom Bradley

With Donald Trump heading to the White House, we have a lot to absorb. We have a very good idea of how Mr. Trump campaigns, but no idea how he’ll govern.

As we noted in a recent blog, at Steadyhand we have been cautiously positioned going into the election, both in terms of liquidity (17% cash in the Founders Fund) and security selection. It’s too early to determine how and when we will make adjustments in the funds. The knee-jerk reaction to Trump’s victory is negative, but uneven. As things sort themselves out, there may be some opportunities to add and trim positions.

In all cases, our fund managers are not trading on a market view, but rather are looking to take advantage of any post-election turbulence to increase the quality and decrease the valuation of their holdings.

In the Founders Fund, we have been cautious because of fundamentals and valuations, not the election. We may put some of the cash to work in the coming days, but for the buying to be substantial, we’ll require a meaningful selloff in the market.