Manager Recommends Tactical Hedging While Remaining Bullish on Quality Stocks, Though Cautions On Crowded Trades and Potential Policy Shifts

Put on some tactical hedges/shorts (about 2% of portfolio) to dampen volatility and generate capital to deploy if market pulls back. Remain largely bullish overall.

Many quality companies starting turnarounds present good buying opportunities (e.g. PYPL, BABA, etc.) with upside ahead.

Manager sentiment bullish but not extreme bubble territory yet. Allocations to "most crowded trades" concerning.

Bank of Japan policy shift from liquidity provider to potential rate hiker could remove key market support.

Indices show some vulnerability near-term but attractive valuations still available if select specific opportunities.