Advertising technology business TTD has been a standout performer in our International equities Portfolio since the business smashed both earnings and revenue growth in early November – the company have devised a solution to the issue of tracking cookies being phased out by web browsers which is rapidly gaining traction. For those not familiar with the industry TTD operates on the buy side of the adverting industry as it brings software to ad space buyers to aid ROI (return on investment).
We like both the stock and the sector but 2 factors are leading to us considering trimming our position:
- One of the dominant market characteristics through 2021 has been the failure of stocks to add to gains once they’ve broken out to fresh highs.
- By definition when a stock rallies strongly our % exposure increases hence by trimming we’re simply going back closer to our original weighting, in this case 6%.
MM is considering trimming our TTD position from 6% to 4%
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This would take our cash position from 4% to 6% increasing our flexibility in todays volatile market.
