TatroCapital Blog

Partial Bank Sale – 9% Cash

As much as I love the financial trade, it’s crowded. Unlike other larger trends developing, semis, basic materials, it seems that every manager I know is loaded in the financials. The trade makes a ton of sense. We’re in a rising rate, deregulation environment. The banks, which are already printing money, now can print even more. Combine this with the fact that most are intrinsically undervalued, it’s been a no-brainer. While I believe the trend is early and will continue for the next few years, I believe in the short to medium term we are long overdue for a correction.

With this in mind, I’ve trimmed our regional bank exposure by half and subsequently taken our cash position in our most aggressive accounts to 9%. This is my first trade of the year.

With this cash it is my intention to reinvest in other areas but I want to be patient and wait for a better entry.