Donaldson gives advice on growing portfolio

Amid less-than-robust growth in business activity and value of companies portfolio, Kevin Donaldson, equities manager at PanCaribbean, asserts, among others, that the removal of misfit assets should be key in positioning portfolio for economic revival going forward.

"Remove dead weight assets which do not fit in with goals," said Donaldson at the recent Jamaica Stock Exchange regional three-day conference.

Donaldson, speaking on the last day of the conference under the theme, 'Revival of the Fittest', gave participants several strategies on how to position and grow portfolio in the current environment.

Purchase assets in keeping with objectives while removing those that do not fit your criteria, he advised.

He encouraged individual investors to cut emotional ties and start investing logically.

He also said that where possible, corporate should look for opportunities to merge/acquire, retool and innovate, adding that prudent management of liquidity and risk should be done by both individuals and corporate.

Calculated risk

"Take calculated and carefully researched risks and invest in areas expected to do well in the new economic cycle," said Donaldson.

While leverage is an important tool, use of an appropriate mix is essential.

Timing is another key element, he said, but predicting the bottom-line should not the most important feature.

"Timing is critical but must be balanced with research," he said, explaining entry and exist strategy of investments.

In investing, though, and positioning for growth, it augurs well to think over the long term.