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Adapting to market risk as a bottom-up manager – Nick Sheridan explains

In this short video, Nick Sheridan, manager of the Henderson Horizon Euroland Fund, explains his approach to varying levels of market risk: he adapts the number of stocks in his portfolio.


“When I think the market offers exceptional opportunities, I will be down at 40 stocks,” he says. “When I think the market has more risk than normal in it, I will be out to 50 stocks.”

“I’m now at 49 stocks which tells you there is a bit of elevated risk, but if the market were to have a correction on some of that risk, that would actually be a good buying opportunity. I then would narrow the fund down to 40 stocks.”