AIM UK

[ls7550]

Reducing Cash Drag

The cash reserves available under Ladder generally act as a drag upon overall total investment returns.

To minimise such drag I personally apply those 'cash' reserves to a stop-loss based strategy that primarily focuses upon loss minimisation. The stop-loss style encounters some stock exposure time, some cash exposure time. That additional stock exposure however has the effect of uplifting the overall total accounts stock exposure level and hence reduces the total accounts cash drag to some extent.