Reply To: Carillion's effect on sector average calculation

[Jeffrey Beranek]

What are your thoughts on topping up sectors in previous HYP portfolios? I have a number of essentially ‘full’ and well balanced HYP portfolios that I ‘unitise’ so that I know when a sector is underweight. However, some sectors do not appear in all my HYP portfolios (such as house-builders or advertisers) that might be currently considered ‘buys’. Might it be okay to add more to such an ‘old’ sector, so long as it never exceeds the average sector size across all HYP porfolios – if you see what I mean. I understand you treat each new HYP as a separate entity, but presumably most people have all the shares bundled together in a single account and not all HYPs might have the same amount saved in it. If all the sectors on a per-HYP basis are largely in balance, would you think it’s better to concentrate on adding more to the current HYP, even if that might mean overweighting a popular sector (e.g. banking)?

Jeff.