Cash Parking During Opportunity Drought

“While it is our least preferred option for allocating capital in most circumstances, from time to time we find ourselves with more capital than good ideas. Rather than deploying our capital into opportunities that we would consider to be of inferior quality, or with unfavourable risk reward characteristics, we will park such excess capital in various fixed income instruments, usually short term treasury bills, while we continue to search for superior return opportunities into which to allocate capital. When holding fixed income instruments, our overriding concern is both to minimize the interest rate risk and credit risk to the greatest extent possible.”